ETH falls into ‘buy zone,’ but volatility-averse traders take a wait-and-see approach

Key takeaways:

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.

Ether one-day chart. Source: Cointelegraph/TradingView

Mayer Multiple drops below 1: What it means for ETH

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.

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

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).

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 sweeping the key $3,000 psychological zone, ETH still sits above several dense long-liquidation clusters.

“We’ve swept 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, implying the market may require a deeper liquidity flush before forming a durable base.

Adding to this, analytics platform Altcoin Vector highlighted that Ether’s overall liquidity structure has “fully reset,” a condition historically present before every major bottom. According to the platform, liquidity collapses tend to precede multi-week bottoming phases rather than immediate structural breakdowns.

Altcoin Vector wrote that the correction window remains open as long as liquidity rebuilds: If replenishment occurs in the coming weeks, ETH could enter its next expansion phase. However, the longer liquidity takes to return, the more prolonged the grind becomes, and the more structurally exposed ETH becomes to more downside.

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.