I'm also facing the same issue, I'm on level 2 but now it's showing " Your account has been flagged for a severe violation of Fiverr policies As a result, you are not able to participate in the level system. "
When I contact Fiverr Support - I got this reply - " your account has been flagged due to location inconsistencies or other activities indicating a connection to violations of our Terms of Service. Consequently, your participation in Fiverr's level system is permanently restricted. "