Key Takeaways
- Ether’s recent 20% monthly decline has firmly established a daily downtrend, bringing its price back to the $3,000 level, a price not seen since mid-July.
- The Mayer Multiple’s dip below 1 suggests Ether is trading at a discount to its 200-day moving average, historically signaling a strong zone for accumulation and potential bottoming phases.
- While leveraged positions have been cleared, significant clusters of liquidations at $2,900 and $2,760 indicate potential for further price volatility before any sustained recovery.
Ether Faces Downtrend Amidst Accumulation Signals
Ether (ETH), the native cryptocurrency of the Ethereum network, has experienced a notable downturn, shedding nearly 20% in November. This decline saw ETH retest the $3,000 mark on November 17, a price point last observed on July 15. This significant price drop has resulted in ETH entering a clear daily downtrend, characterized by a series of lower highs and lower lows. While these technical indicators suggest a fragile market state, emerging long-term accumulation signals offer a counterpoint.
Mayer Multiple Signals Potential ETH Accumulation Zone
A key indicator of potential long-term buying interest is the Mayer Multiple (MM), developed by Capriole Investments. This metric compares Ether’s current price to its 200-day moving average. When the MM falls below 1, it signifies that ETH is trading at a discount relative to its long-term trend, a condition historically associated with significant accumulation phases.
Ether’s Mayer Multiple has recently fallen below 1 for the first time since mid-June, re-entering what is often termed the buy zone. Historically, periods where the MM is below 1 have preceded substantial multi-month price recoveries for ETH.
While there was an exception in January 2022 when the metric remained subdued due to the broader bear market, current MM levels more closely resemble early-cycle reset conditions. This suggests the market is exhibiting characteristics of historical buying opportunities rather than outright distribution or selling pressure, which typically occurs when the MM exceeds 2.4.
Liquidity Fluctuations and Potential Volatility Ahead
Despite the presence of long-term accumulation signals, the immediate price action for Ether remains sensitive. Data from Hyblock Capital indicates that even after ETH cleared the significant $3,000 psychological level, substantial clusters of leveraged long positions still exist below this price point. These clusters are located between $2,904 and $2,916, and further down between $2,760 and $2,772.
Hyblock Capital’s analysis suggests that the market might need to experience a deeper flush of this liquidity before a robust base can be established.
Adding to this perspective, the analytics platform Altcoin Vector has pointed out that Ether’s overall liquidity structure has undergone a complete reset. This condition has historically been observed before significant market bottoms. According to Altcoin Vector, such liquidity collapses often precede bottoming phases lasting several weeks, rather than signaling an immediate and severe structural breakdown.
Altcoin Vector further noted that the current correction window remains open as long as liquidity continues to rebuild. If liquidity replenishes in the coming weeks, ETH could potentially enter its next expansion phase. However, a prolonged period of slow liquidity recovery could increase ETH’s structural vulnerability to further downside pressure.
Expert Summary
Ether is currently navigating a daily downtrend, retesting key support levels. However, metrics like the Mayer Multiple suggest that ETH may be entering a historically favorable accumulation zone. Despite these positive long-term signals, the presence of significant leveraged liquidity clusters below current prices indicates that further volatility is possible before a sustainable recovery takes hold.
