Resistance
A price level with substantial selling interest that blocks upward advances.
What is Resistance?
Resistance is a price zone where sell orders accumulate, resisting rises, often as sell walls in the order book. In ETH, resistance at $30,000 could cap gains if sells overwhelm. Traders sell near resistance for exits.
It arises from round numbers or prior highs, like $2,020 for ETH/USDT with 30 ETH sells. Breaching resistance may turn it into support, signaling uptrends. Dense resistance increases trade costs in low-volume markets.
Related Terms
Ethereum (ETH)
A decentralized blockchain platform that pioneered smart contracts, enabling programmable money and decentralized applications.
Seed Phrase
A sequence of words used to back up and restore access to a digital asset wallet.
Honeypot Contract
A deceptive smart contract designed to allow users to buy a digital asset but restrict or prevent selling, often used to trap unsuspecting investors.
Embedded Call Option
A call option integrated into a security, like converts, allowing conversion to equity.
Celestia DA
A modular data availability network that offloads DA from Ethereum's execution layers, enabling scalable rollups with low costs.
ETF
Exchange-Traded Funds that hold baskets of assets and trade on stock exchanges, providing regulated exposure to digital assets.