Ether may be positioned for a near term rebound with fresh indicators suggesting the crypto market is not yet overheated. Market intelligence firm Santiment noted that modest stablecoin yields point to a healthy environment that could allow ETH to climb back toward its recent resistance zone around $3,200.
Stablecoin Yields Point to Room for Growth
Santiment highlighted that lending yields for major stablecoins remain subdued at roughly four percent. According to the firm, such low rates are an important signal that speculative leverage is still limited across the market. Historically, sharp rises in stablecoin yields have coincided with excessive leverage and have often preceded significant market tops.
With the current environment still calm, Santiment expects Ether to gain close to seven percent from its weekend level near $2,991 and retest the $3,200 barrier in the coming days.
Technical Indicators Suggest Early Recovery
Ether has lagged behind broader market movements in recent weeks. The asset has fallen more than twenty one percent over the past month following a major sell off triggered by the nineteen billion dollar liquidation event on 10 October. Market pressure intensified after the announcement of one hundred percent tariffs on Chinese goods by United States President Donald Trump.
Ether is down 21.85% over the past 30 days. Source: CoinMarketCap
Despite recent weakness, momentum indicators are beginning to turn more constructive. Crypto analyst Matthew Hyland noted that the ETH to BTC weekly chart is nearing a bullish ribbon flip. This would be the first such signal since July 2020 and is generally viewed as an encouraging shift for Ether’s relative strength.
Spot Ether ETFs Return to Positive Flows
Institutional interest appears to be stabilising as well. Spot Ether exchange traded funds recorded more than three hundred twelve million dollars in net inflows over the past week. This comes after three consecutive weeks of significant redemptions. Renewed demand for Ether based investment products may help strengthen overall market confidence and support price recovery.
Market Sentiment Shows Signs of Stabilisation
Broader crypto sentiment is also beginning to recover. The Crypto Fear and Greed Index spent most of November in extreme fear. It has now edged into the fear zone, signalling early signs of improving confidence among traders. November has traditionally been one of Bitcoin’s strongest months though both October and November delivered weaker results this year. This has raised questions about the reliability of seasonal trends.
Even so, historical data from CoinGlass shows that December has offered an average Ether return of nearly seven percent since 2013. Combined with easing fear levels and supportive yield signals, analysts believe conditions remain favourable for at least a short term upward move.
