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Ethereum Has Entered a “Buy Zone,” but What Is Holding Back the Bulls?
Bullish traders defended the psychological level of $3000, while one on-chain metric issued a buy signal.
November’s price decline exceeded 20%, pushing the Mayer Multiple indicator below 1 — a level that has historically aligned with market bottoms.
The market has flushed out excessive leverage, while order clusters near $2900 and $2760 warn of potential volatility risks ahead of a possible recovery.
On November 17, Ethereum ETH $2,944 tested the $3000 level, last seen on July 15.
ETH/USD daily chart. Source: Cointelegraph/TradingView.
The Mayer Multiple dropped below 1 for the first time since mid-June. Such conditions indicate the cryptocurrency is trading at a discount relative to its long-term trend. This zone typically corresponds to periods of accumulation. A rise above 2.4 signals risks of entering an active distribution phase.
Mayer Multiple dynamics. Source: Capriole Investments.
Throughout the history of the second-largest cryptocurrency, readings below 1 have generally indicated long-term bottoms. The exception was January 2022, when the indicator remained suppressed due to a broader bear market.
Short-term risks
Despite the accumulation setup, the short-term outlook for bulls remains mixed.
According to Hyblock Capital, after breaking through the psychological $3000 level, there are still several dense clusters that may trigger new waves of liquidations before a solid base forms.
“They are located in the zones from $2904 to $2916 and from $2760 to $2772,” the analysts said.
Source: Hyblock.
Altcoin Vector added that the current liquidity structure resembles previous periods that preceded the formation of medium-term bottoms. Experts note that this process may take weeks and warn against expecting a sharp reversal.
If liquidity flows into this “correction window,” Ethereum may eventually return to a growth trajectory. If the process drags on, the risk of setting new lows will increase, the analysts concluded.
Source: Altcoin Vector.
See also: "More Than 40% of XRP Tokens Were Purchased Above the Current Price"
