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
Gnosis Safe
A multi-signature smart contract wallet on Ethereum for secure, shared management of digital assets with customizable approval thresholds and recovery options.
DEX
A decentralized exchange (DEX) is a platform for trading digital assets directly between users on a blockchain without intermediaries.
Borrow Rate (Lending)
The interest rate borrowers pay to access funds from a lending pool.
Liquidation (Perp Dex)
The forced closure of a leveraged position when margin falls below the required level.
51% Attack
A 51% attack occurs when a single entity or group controls over 50% of a blockchain’s computing power or stake, allowing them to manipulate the network’s transaction ledger.
Alpha
An advantage in digital asset trading gained through early or exclusive access to information, strategies, or opportunities not yet widely known by market participants.