As you can see in the picture, this blank would not continue to etch past the guard. Could this because that is where the heat treat effectively stops?
You got it. That is why using clay for creating a hamon will etch in different levels of darkness. The clay allows the steel to cool slower than the uncoated part. It is also why sometimes you can get a hamon on un-clayed steel when the spine (which is thicker) cools at a different rate than the thinner blade edge.
The blade is martensite - that etches dark. The tang is pearlite - that etches lighter. Also, as Pablo pointed out, there may be decarb still on the tang. It doesn't etch at all.
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