HomeCoinsEthereumETH Could Soon Reclaim $3.2K Due to Low Stablecoin Yields: Santiment

ETH Could Soon Reclaim $3.2K Due to Low Stablecoin Yields: Santiment

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According to crypto sentiment platform Santiment, the worth of Ether could rise nearly 7% within the near term as subdued stablecoin returns suggest the crypto market has not yet reached overheated conditions.

“Currently, yields are low, hovering around 4%. This suggests that the market has not yet reached a significant peak and will proceed to rise,” Santiment said in a report on Saturday, predicting that Ether (ETH) could soon revisit its $3,200 resistance level.

According to CoinMarketCap, this represents a rise of roughly 6.7% from the worth of $2,991 on the time of publication.

Ether is down 21.85% within the last 30 days. Source: CoinMarketCap

Santiment said stablecoin yields on lending protocols are “a measure of market health” and are currently low, averaging around 3.9% to 4.5% across major platforms. The platform explained that a rise in yields typically indicates a rise in speculative leverage, a pattern that has historically preceded peaks in major crypto markets.

Spot Ether turns positive after the final market downturn

While Ether's price has lagged in recent weeks, technical and flow-based signals are starting to point out signs of recovery. The asset has seen a 21.32% decline over the past 30 days as a part of a broader market downturn that began following the crypto market's significant liquidation value $19 billion on October 10. This got here shortly after US President Donald Trump announced 100% tariffs on Chinese goods.

Crypto analyst Matthew Hyland identified in an X post on Saturday that “ETH-BTC Weekly is near a bullish band change for the primary time since July 2020.”

Meanwhile, spot Ether ETFs reversed course this week, recording weekly net inflows of $312.6 million after three straight weeks of heavy withdrawals.

Market sentiment is showing signs of improvement

Sentiment across the crypto market can be showing signs of improvement. In November, Bitcoin's historically strongest month, the Crypto Fear & Greed Index spent 18 days in “extreme fear” before rising to a “fear” level on Saturday, signaling some stabilization in market sentiment.

Looking forward, December has historically seen a median return for Ether of 6.85% since 2013, in accordance with CoinGlass.

However, with October and November typically being strong months for Bitcoin (BTC), which has underperformed this yr, many within the broader crypto community are questioning the reliability of seasonal trends.

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