The crypto market is showing signs of recovery after a difficult November. Santiment analysts are scrutinizing a little-known but revealing indicator: stablecoin returns. Their verdict could well delight Ethereum holders.
In brief
- Stablecoin yields currently range between 3.9% and 4.5%, a level historically associated with room for improvement for the market.
- Santiment anticipates a rise in Ether towards $3,200, an increase of almost 7% compared to its current price.
- Ethereum spot ETFs saw $312.6 million in net inflows this week, reversing three straight weeks of outflows.
- The ETH-BTC ratio is about to shift into an uptrend for the first time since July 2020.
Santiment anticipates a return of Ethereum towards $3,200
Stablecoin yields on lending protocols are a valuable indicator of market health.
Santiment affirms this in his analysis published on Saturday : “ Currently, yields are low, around 4%. This indicates that the market has not yet reached a major high and could move further. »
This observation is based on a simple historical correlation. High yields generally reflect an explosion in speculative leverage, a phenomenon that often precedes market peaks.
Conversely, moderate rates suggest that investors have not yet adopted excessively risky behavior. The market therefore has room to maneuver before entering an overheating zone.
Ether is currently trading around $3,000, down 21.85% over the last 30 days. This decline is part of a general correction triggered by the massive liquidation of 19 billion dollars that occurred on October 10, itself caused by the announcement of 100% customs duties on Chinese products by Donald Trump. Despite this decline, technical fundamentals suggest an imminent reversal.
Analyst Matthew Hyland points out that “ ETH-BTC weekly chart about to swing into an uptrend for the first time since July 2020 “. This major technical signal reinforces the hypothesis of a recovery of Ethereum against Bitcoin.
Market sentiment is gradually moving out of the red zone
The Crypto Fear & Greed Index, a barometer of market emotions, spent 18 days in “extreme fear” during November before rising to a level of simple “fear” on Saturday. This improvement, although modest, reflects a gradual stabilization of investor sentiment.
Flows into spot Ethereum ETFs confirm this change in atmosphere. After three straight weeks of significant withdrawals, these products saw $312.6 million in net inflows this week. This turnaround suggests that institutional investors are starting to bet on the world's second-largest crypto again.
Historically, December has averaged a 6.85% return for Ether since 2013, according to CoinGlass data. However, some market participants are questioning the reliability of seasonal trends after this year's disappointing performance. Caution therefore remains in order.
In addition, Ethereum is preparing a major update called “Glamsterdam”, which could triple the network's gas limit by 2026. This development aims to reduce transaction fees and improve scalability, potentially strengthening the attractiveness of ETH to developers and investors.
Santiment's analysis offers a refreshing perspective on Ethereum's upside potential. The moderate returns of stablecoins, combined with positive technical signals and the return of institutional flows, paint a promising horizon. The $3,200 mark now appears within reach for ETH.
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