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

💡 DMK Insight

Ether’s recent dip below the $3,000 mark is significant for traders: it’s entering a historical buy zone as the Mayer Multiple falls below 1. This metric often indicates undervaluation, suggesting potential upside for long-term holders. However, the presence of liquidity clusters hints at imminent short-term volatility, which could create trading opportunities for day and swing traders. Watch for price action around $3,000; a solid bounce could signal a bullish reversal, while a break below might trigger further selling pressure. On the flip side, if the broader market sentiment remains bearish, even historically favorable levels might not hold. Keep an eye on correlated assets like Bitcoin, as its movements could influence ETH’s trajectory. The next few days will be crucial; monitor the daily close for confirmation of a trend shift or continuation.