Eth Falls Into ‘buy Zone,’ But Volatility-averse Traders Take A...

Ether retests $3,000 as its Mayer Multiple falls below 1, entering a historical buy zone, while liquidity clusters signal short-term volatility ahead.

Ether’s 20% monthly decline has pushed it into a clear daily downtrend, retesting $3,000 for the first time since July.

The Mayer Multiple falling below 1 signals a historically strong accumulation zone, resembling past bottoming phases.

Leveraged liquidity has reset, but clusters at $2,900 and $2,760 warn of further volatility before a potential recovery.

Ethereum’s native token, Ether (ETH), has slipped nearly 20% in November, from $3,900 to retesting the $3,000 level on Nov. 17, a price last seen on July 15. The drawdown has pushed ETH into a well-defined daily downtrend, marked by consecutive lower highs and lower lows, placing the market in a technically fragile zone despite long-term accumulation signals starting to emerge.

One of those signals comes from Capriole Investments’ Mayer Multiple (MM), which measures the ratio between ETH’s current price and its 200-day moving average. A reading below 1 indicates Ether is trading at a discount to its long-term trend and has historically aligned with major accumulation zones.

ETH’s Mayer Multiple dropping below 1 for the first time since mid-June now places it back into the “buy zone,” a region that has previously preceded strong multimonth recoveries.

Throughout ETH’s history, sub-1 readings have typically indicated long-term bottoms, with the main exception being January 2022, when the metric remained suppressed due to the onset of a broader bear market.

At the moment, MM levels resemble early-cycle reset conditions rather than the structural breakdown seen in 2022, positioning the current market closer to historical buy opportunities than to distribution or selling zones (usually found when MM is greater than 2.4).

Related: Bitcoin, Ether now operate in ‘different monetary’ universes: Data

Source: CoinTelegraph