An Ethereum supply wall refers to a substantial concentration of Ether held at a specific price level, typically identified through on-chain analysis of address cohorts and their acquisition costs. This concentration creates a significant resistance or support level, as these holders may be inclined to sell if the price reaches their cost basis or a profit target. A supply wall can absorb significant buying or selling pressure, impeding rapid price movements beyond that level. It functions as a critical technical barrier in Ether’s price action.
Context
The discussion surrounding an Ethereum supply wall often involves its implications for future price movements and market liquidity. A key debate focuses on the resilience of these walls and whether they will act as strong price anchors or be overcome by broader market forces. Understanding the location and size of these supply concentrations provides valuable context for assessing potential price ceilings or floors in Ether’s trading range.
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