Step 1: Use mechanics:
For circular orbit, $E=-\tfrac12mv^2$ in magnitude, and $L=mvr$.
Step 2: Eliminate r:
With $v=\dfrac{L}{mr}$, and using $mv^2=\dfrac{ke^2}{r}$, one gets $r=\dfrac{L^2}{mke^2}$.
Step 3: Energy:
$|E|=\dfrac{ke^2}{2r}=\dfrac{mk^2e^4}{2L^2}\propto L^{-2}$. Option (C).
Final Answer:
Energy magnitude goes as 1/L^2.
\[ \boxed{C} \]