Stablecoin yields are currently low, which suggests that the market has not yet reached a peak, and Ether might target the $3,200 mark in the short term, according to insights from Santiment.

Currently, yields hover around 4%, indicating that a significant market top has not been reached, and further growth is possible. Santiment noted this in a report released on Saturday, forecasting that Ether (ETH) could soon test its $3,200 resistance level, reflecting a potential increase of approximately 6.7% from its then-current price of $2,991, as per CoinMarketCap.

Ether has declined by 21.85% over the last month. Source: CoinMarketCap

Santiment emphasized that stablecoin yields serve as a measure of market health, averaging between 3.9% and 4.5% across top lending protocols. A rise in these yields usually signals increased speculative leverage, often preceding significant peaks in the crypto market.

Positive Signs for Ether after Market Declines

In recent weeks, Ether’s value has lagged, reflecting broader market challenges. Notably, it has experienced a 21.32% drop in value over 30 days, following a notable $19 billion liquidation event on October 10, which came soon after a significant tariff announcement from the United States government.

Crypto analyst Matthew Hyland drew attention to an X post where he noted that the “ETH-BTC Weekly is nearing a bullish ribbon flip for the first time since July 2020.”

In other news, spot Ether ETFs have demonstrated recovery this week, achieving $312.6 million in net inflows, ending three weeks of withdrawals.

Market Sentiment Shows Improvement

Market sentiment is also exhibiting recovery signs. Historically, November has been Bitcoin’s strongest month, but the Crypto Fear & Greed Index had shown extreme fear for 18 days before improving to a fear level on Saturday.

Looking forward, Ether has yielded an average return of 6.85% in December since 2013, as reported by CoinGlass. This trend raises questions among the crypto community regarding the reliability of seasonal patterns, particularly as October and November have traditionally been robust periods for Bitcoin (BTC), which has underperformed compared to previous years.