Since the beginning of November, Ethereum, the second-largest cryptocurrency by market capitalization, has fallen by almost 20% and dropped to the $3,000 level for the first time in five months. Against this backdrop, one of the key on-chain indicators — the Mayer Multiple — has flashed a signal that investors traditionally associate with the start of long-term growth phases.
Mayer Multiple Enters Accumulation Zone
The Mayer Multiple tracks the ratio of an asset’s current price to its 200-day moving average. For the first time since June, the value of this metric has fallen below 1, moving into the so-called “accumulation zone.”
Historically, such readings have often marked the beginning of multi-month bullish periods. The main exception was January 2022, when the market was in a deep bear phase.
Earlier, analyst and trader Michaël van de Poppe described the current Ethereum levels as “perfect for accumulation.” In his view, ETH is showing more resilience than Bitcoin despite the correction.
At the time of writing, Ethereum is trading around $3,100: over the past 24 hours, the price has gained about 1%, but over the week the asset is still down roughly 12.7%.
Is the Bottom Near? Short-Term Risks Remain
Despite the emerging technical basis for long-term accumulation, the short-term picture for Ethereum remains tense.
Analysts at Hyblock Capital note that even after reclaiming the key psychological level of $3,000, the price is still hovering above several major clusters of buy orders. If these orders are wiped out, a new wave of downside pressure is possible.
According to their estimates, the next important zones where selling pressure may intensify lie in the $2,904–2,916 and $2,760–2,772 ranges. In these areas, a fresh round of long liquidations could be triggered.
Hyblock Capital emphasizes that a deeper correction in the current environment could actually be beneficial, as it would help form a “solid foundation” for a more sustainable uptrend later.
Liquidity Squeezed, Market Prepares for Consolidation
Data from Altcoin Vector show that Ethereum liquidity has “almost completely dried up” — a situation that has often preceded tests of major price lows in the past.
Experts point out that liquidity squeezes more often lead not to an instant collapse, but to multi-week consolidation within a broad range. At the same time, the potential for further correction, in their view, remains in place until fresh capital starts flowing back into the market and signs of liquidity recovery appear.
If new funds enter the ETH market in the coming weeks, the asset may transition into the next phase of an upward trend. Otherwise, prolonged sideways trading will increase the risk of a deeper drawdown.
Retail Capitulation as a Historically Bullish Signal
Analysts at Santiment say that Ethereum is “ready for a reversal.” According to their data, recent weeks have seen active selling from small holders.
Over the past month, this category of investors has sold around 0.9% of its ETH holdings. Historically, market prices have often moved in the opposite direction to retail behavior. Ongoing panic selling by small investors is therefore viewed by analysts as a potentially positive factor for a medium-term recovery.
Key Levels for Restoring the Bullish Trend
Investor Ted Pillows believes that for a confident bullish impulse to return, Ethereum needs to consolidate above the $3,200 level. If this resistance is broken and held, the next upside targets, in his view, could be the $3,400 and $3,600 zones.
In summary, the Ethereum market is now at a point where long-term indicators highlight attractive accumulation conditions, while short-term risks persist due to weak liquidity and potential selling pressure from remaining long positions. For a confirmed reversal, market participants will be watching liquidity dynamics, retail investor behavior, and the way price reacts to key resistance levels.
