At what point do I need to develop Level 3 thinking?

[Pepsquad]

Most people here I'm sure are familiar with the levels of thought in poker, but as a quick review...

Level 1 is knowing how to correctly play the cards your are dealt, taking into account position, stack sizes, etc. with no regard of what two cards your opponent may be playing.

Level 2 (which is what I'm developing currently) begins to shift focus from ones own cards towards a range of hands which your opponent might hold.

I'm currently playing $5.50 and $11 SNG's at UB and the $11's at Party (where level 2 is where you need to be operating).

So my question for posters here who are playing the higher SNG's, at what point do you need to develop Level 3 thinking (What range of hands does my opponent put me on? And based on his read, what action will be most beneficial for me?).

My gut says that the $33's are probably where the level 2's are struggling and the level 3's are winning but wanted to hear from those with experience.

Thanks,

Pep.