ZKsync, one of Ethereum’s prominent Layer-2 scaling solutions, has announced the planned shutdown of its ZKsync Lite network.

The closure is scheduled for May 4, 2026, marking the end of the original rollup that focused on fast and low-cost transactions.

The announcement has prompted renewed attention on the ZK token, which now faces short-term bear pressure.

ZKsync Lite, launched in June 2020, was designed as a simplified zk-rollup to enable quick transfers on Ethereum.

It served as a stepping stone for developers and users exploring Layer-2 technology, but its functionality was limited compared to the newer ZKsync Era.

With the Era network supporting full smart contracts and broader applications, the Lite network has become less relevant to the project’s long-term roadmap.

The team behind ZKsync emphasises that the shutdown is an orderly and planned process.

Block production on the Lite network will stop, and the final state will be frozen.

Despite the closure of ZKsync Lite being a significant milestone, the immediate impact on trading activity is expected to be limited on the already heavily bearish token.

From a market perspective, the ZK token has shown weakness leading up to this event.

Trading at around $0.0192, the cryptocurrency is down nearly 30% over the past month.

In addition, its price is currently below all key moving averages, signalling a weak trend, and the Relative Strength Index (RSI) reading suggests almost oversold assets.

This combination reflects a market that is cautious and uncertain, waiting for clearer direction.

The ZKsync (ZK) token is currently in a tight trading range.

The immediate support lies at the recent swing low of $0.01909, which has held as a floor in recent sessions.

On the upper side, the immediate resistance is at the 38.2% Fibonacci retracement level near $0.01971.

A daily close above this resistance could signal a short-term bullish reversal, while a break below the support may confirm continued downward pressure.

Daily trading volumes are modest, hovering around $16.8 million, reflecting cautious sentiment among traders.

Looking ahead, traders should pay attention to key levels that define ZK’s near-term outlook.

A sustained move above $0.01971 could attract short-term buyers and trigger momentum toward higher resistance levels.

Conversely, a drop below $0.01909 may open the door for further declines, testing lower support levels near the recent historical low of $0.01798.

As to what traders could expect in the short term, there is potential for minor rebounds within the consolidation range, given that the token is currently in the oversold region, although the overall prevailing trend remains bearish.

The post ZK token under pressure as ZKsync announces closure of ZKsync Lite appeared first on Invezz

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