Low stablecoin yields suggest a lack of an overheated market, presenting an opportunity for Ether to possibly rise to $3,200 soon, as noted by Santiment.

“Currently, yields are low, around 4%. This indicates the market has not reached a major top and could still push higher,” Santiment stated in a recent report, anticipating that Ether (ETH) might test the $3,200 resistance soon.

This hints at a close to 7% increase from its value of $2,991 at the publication time, as reported by CoinMarketCap.

Ether Price DropEther has seen a decline of 21.85% over the past month. Source: CoinMarketCap

Santiment noted that the stablecoin yields on lending platforms serve as indicators of market health, currently averaging around 3.9% to 4.5%. A surge in yields often signifies increased speculative leverage, a trend that has historically preceded significant peaks in the crypto market.

Positive Signs for Ether Amidst Market Decline

Despite Ether’s recent struggles, showing a 21.32% decrease over the last month following a broader market downturn, early signs of recovery arise among technical signals. This market shift comes right after a substantial $19 billion liquidation event on October 10, which closely followed the 100% tariffs announced by President Donald Trump.

Analyst Matthew Hyland observed on X that the “ETH-BTC Weekly is closing in on a bullish ribbon flip for the first time since July 2020.”

Additionally, spot Ether ETFs experienced a remarkable turnaround this week, gaining $312.6 million in net weekly inflows after facing weeks of substantial outflows.

Market Sentiment Trending Upwards

The sentiment across the crypto landscape also appears to strengthen. Historically, November has been Bitcoin’s strongest month, and the Crypto Fear & Greed Index shifted from extreme fear to fear this Saturday—reflecting some positive stabilisation in market feelings.

In looking ahead, December has traditionally yielded an average return of 6.85% for Ether since 2013, according to CoinGlass. However, given Bitcoin’s underperformance in typically strong months like October and November this year, doubts grow amongst the crypto community regarding the reliability of seasonal patterns.