  In rare-earth compounds with valence fluctuation, the proximity of the 4f
level to the Fermi energy leads to instabilities of the charge configuration
and the magnetic moment. Here, we provide direct experimental evidence for an
induced magnetic polarization of the Eu$^{3+}$ atomic shell with J=0, due to
intra-atomic exchange and spin-orbital coupling interactions with Eu$^{2+}$
atomic shell. By applying external pressure, a transition from
antiferromagnetic to a fluctuating behavior in a EuNiGe$_3$ single crystals is
probed. Magnetic polarization is observed for both valence states of Eu$^{2+}$
and Eu$^{3+}$ across the entire pressure range. The anomalous magnetism is
discussed in terms of a homogeneous intermediate valence state where frustrated
Dzyaloshinskii-Moriya couplings are enhanced by the onset of spin-orbital
interaction and engender a chiral spin-liquid-like precursor.
