I have a question about the energy of a particle in orbit due to a gravitational attraction. The effective potential given by the gravitational force is defined to be $$ U_{\text{eff}} = \frac{L^2}{2mr^2}- \frac{GmM}{r} $$ On the other hand, using conservation of energy and writing $v^2 = \vert{\dot{\vec{r}}}\rvert^2$ in polar coordinates we see that $$ \frac{1}{2}m\dot{r}^2 = E - U_{\text{eff}}\tag{1} $$ The above expression got me thinking, and I wanted to ask if I correctly understood what the equation implied.
If $ E = U_{\text{eff}}$ then $(1)$ tells us that $\dot{r} = 0 \iff r = \text{constant}$, but since $r = \text{constant}$ describes a circular orbit, is the statement
The effective potential is equal to the total energy of a particle under a gravitation force if and only if the orbit of the particle is circular.
correct? Or am I misunderstanding? Thank you in advance!