ETH enters the buy zone below 3,000. dollars after liquidity reset

Key takeaways:

Ether’s 20% monthly price drop has put it on a clear daily downtrend, retesting $3,000 for the first time since July.
A drop in the Mayer multiplier below 1 signals a historically mighty accumulation zone, reminiscent of previous phases of lows.
Leveraged liquidity has reset, but clusters at $2,900 and $2,760 warn of further volatility ahead of a potential recovery.

Ethereum’s native token, Ether (ETH), fell almost 20% in November, from $3,900 to retesting the $3,000 level on November 17, with the price last seen on July 15. The decline pushed ETH into a well-defined daily downtrend characterized by consecutive lower highs and lower lows, putting the market in a technically volatile zone despite long-term accumulation signals beginning to emerge.

Ether One Day Chart. Source: Cointelegraph/TradingView

Mayer Multiple Drops Below 1: What Does This Mean for ETH

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

Cryptocurrencies, Investments, Markets, Cryptocurrency Exchange, Price Analysis, Market Analysis, Altcoin Watch, Ether Price, Ethereum Price — *The Mayer Ether multiplier dropped below 1. Source: Capriole Investments*

Mayer multiple of ETH falls below 1 is back in the “buy zone” for the first time since mid-June, a region that previously preceded a mighty, months-long recovery.

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

Right now, MM levels resemble early-cycle reset conditions rather than the structural breakdown seen in 2022, which places the current market closer to historical buying opportunities rather than distribution or sell zones (typically found when MM is greater than 2.4).

Related: Bitcoin and Ether now operate in ‘different monetary worlds’: Data

Liquidity resets, but deeper clusters remain

Despite the macro-accumulation setup, short-term price action remains vulnerable. Data from Hyblock Capital shows that even after crossing the key psychological zone of $3,000, ETH is still above several dense long liquidation clusters.

“We have analyzed quite a few large (bright) long liq clusters. The next two below on ETH are $2,904 to $2,916 and $2,760 to $2,772,” Hyblock wrote, suggesting that the market may require a deeper influx of liquidity before it forms a sustainable base.

In addition, there is the Altcoin Vector analytical platform highlighted that Ether’s overall liquidity structure has been “completely reset”, which historically occurs before every major low. According to the platform, a liquidity crunch usually precedes multi-week lows, rather than an immediate structural breakdown.

Altcoin Vector wrote that the correction window remains open as long as liquidity recovers: if replenishment occurs in the coming weeks, ETH could enter another expansion phase. However, the longer it takes for liquidity to return, the longer the grind becomes, and the more structurally exposed ETH becomes, the more disadvantageous it becomes.

Related: ETH Falls to 4-Month Low Below 3K dollars: Has the bull market ended?

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.