Ether's price may rise nearly 7% in the near term, as subdued stablecoin yields suggest the crypto market has yet to reach overheated conditions, according to crypto sentiment platform Santiment.
“Currently, yields are low, around 4%. This indicates the market has not reached a major top and could still push higher,” Santiment said in a report on Saturday, forecasting that Ether could revisit its $3,200 resistance level soon.
This represents an approximate 6.7% increase from its price of $2,991 at the time of publication according to CoinMarketCap.
Santiment said stablecoin yields in lending protocols offer “a gauge of market health” and are currently low, averaging roughly 3.9% to 4.5% across major platforms. The platform explained that a surge in yields typically indicates an increase in speculative leverage, a pattern that has historically preceded major crypto market tops.
Spot Ether Turns Positive After Broader Market Downturn
While Ether’s price has lagged in recent weeks, technical and flow-based signals are beginning to show early signs of recovery. The asset has posted a 21.32% decline over the past 30 days, as part of a broader market downturn that began after the significant $19 billion crypto market liquidation event on Oct. 10. This followed shortly after US President Donald Trump’s announcement of 100% tariffs on Chinese goods.
Crypto analyst Matthew Hyland pointed out in an X post on Saturday that the “ETH-BTC Weekly is closing in on a bullish ribbon flip for the first time since July 2020.”
Meanwhile, spot Ether ETFs staged a turnaround this week, recording $312.6 million in net weekly inflows after three straight weeks of heavy withdrawals.
Market Sentiment Shows Signs of Improvement
Sentiment across the broader crypto market is also showing signs of improvement. In November, historically Bitcoin’s strongest month, the Crypto Fear & Greed Index spent 18 days in “extreme fear” before moving up to a “fear” reading on Saturday, signaling some stabilization in market sentiment.
Looking ahead, December has historically posted an average return for Ether of 6.85% since 2013, according to CoinGlass.
That said, with October and November typically being strong months for Bitcoin, which have underperformed this year, many in the broader crypto community are questioning the reliability of seasonal trends.