Lesson #6

Whenever a sharp drop occurs, it's more likely that the price will return to the zone from where it initially surged. In such cases, the price often does not cross the 50% retracement level until it retests the previous lows.

In this chart, when ETH experienced a sharp dip and then started moving back up, that was the moment where traders who had set buy limit orders in that lower zone should consider selling during the retracement move — especially if the price approaches the 50% level but shows weakness.

Summary:

Sharp drop → return to base zone (demand area) is common.

Price usually won't cross 50% retracement level until it retests lows.

Limit buyers in the base zone should consider selling on the bounce rather than holding for more.

$ETH