According to crypto sentiment platform Santiment, the price of Ether could rise by nearly 7% in the short term, as stablecoin yields remain subdued, suggesting the crypto market has not yet reached overheating.
“Yields are currently low at around 4%, indicating that the market has not hit a major ceiling and could still move higher,” Santimento said in a note on Saturday, predicting that Ether (ETH) could revisit the $3,200 resistance level soon.
According to CoinMarketCap, this represents an increase of approximately 6.7% from the issue price of $2,991.
Ether has fallen 21.85% in the past 30 days. sauce: coin market cap
Santiment said stablecoin yields in lending protocols, which are a “measure of market health,” are currently low, averaging around 3.9% to 4.5% across major platforms. The platform explained that a spike in yields typically indicates increased speculative leverage, a pattern that has historically preceded major crypto markets reaching all-time highs.
Spot Ether turns positive after broad market downturn
Ether price has lagged in recent weeks, but technical and flow-based signals are starting to show early signs of recovery. The asset has fallen 21.32% in the past 30 days as part of a broader market downturn that began after the $19 billion crypto market liquidation event on October 10. This followed shortly after US President Donald Trump announced 100% tariffs on Chinese goods.
“ETH-BTC Weekly is nearing a bullish ribbon reversal for the first time since July 2020,” crypto analyst Matthew Hyland wrote on Saturday’s X Post.
Meanwhile, the Spot Ether ETF performed well this week, posting weekly net inflows of $312.6 million after three consecutive weeks of heavy withdrawals.
Market sentiment is showing signs of improvement
There are also signs of improvement in sentiment across the broader crypto market. In November, historically Bitcoin's strongest month, the Crypto Fear & Greed Index remained in a state of “extreme fear” for 18 days before rising to a “fear” reading on Saturday, suggesting some stabilization in market sentiment.
Related: Arthur Hayes warns that Monad could crash by 99%, calling it a high-risk “VC coin”
Looking ahead, the average December return for Ether has historically been 6.85% since 2013, according to CoinGlass.
However, while October and November are typically strong months for Bitcoin (BTC), this year's lackluster performance has led many in the broader crypto community to question the reliability of seasonal trends.
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