$ETH ｜Breaking below the 2,400 level
How should you understand support and resistance? Previous highs and lows are common reference points: the fact that price was turned back or held up at those levels last time often influences buying and selling when it returns there.
The first pullback after a breakout is often seen as a test: if price can stabilize near the level, the idea that resistance has turned into support becomes more convincing.
It’s more prudent to look for confirmation from multiple data points rather than relying on just one, but even more signals can’t provide a definitive answer.
How should you understand support and resistance? Previous highs and lows are common reference points: the fact that price was turned back or held up at those levels last time often influences buying and selling when it returns there.
The first pullback after a breakout is often seen as a test: if price can stabilize near the level, the idea that resistance has turned into support becomes more convincing.
It’s more prudent to look for confirmation from multiple data points rather than relying on just one, but even more signals can’t provide a definitive answer.