Resistance
What is resistance, and what does it tell us when a price rise stalls at a level where sellers have shown up before?
In plain words
Resistance is a price level at which selling pressure has repeatedly appeared, capping a rise. It is not a wall but a zone where enough orders arrive to turn the price back down.
Why it matters
Traders watch resistance because a level that has held more than once marks where supply has previously overwhelmed demand. A rise that stalls there suggests the buying interest is not yet strong enough to absorb the selling at that price.
In a real week: ETH, week of 31 March 2025
In the week of 31 March 2025, ETH opened at 1807.74 and rose to a high of 1957.00 on Wednesday 2 April at 20:00 UTC. The rally then stalled, and by the close on Sunday 6 April the price had fallen to 1580.76, a weekly change of -12.56%, ending in the lower third of the week's range with a peak-to-trough spread of 27.28%.
A common mistake
Treating a resistance level as a fixed line that cannot be crossed. Prices break through resistance regularly; the level marks where selling has appeared before, not a permanent ceiling.