CMC News

Ethereum Could Hit $3,200 Soon on Low Stablecoin Yields, Says Sentiment

$ETH price may climb nearly 7% in the near term as subdued #stablecoin yields suggest the crypto market has yet to reach overheated conditions, according to Santiment. The crypto sentiment platform projects $ETH could revisit its $3,200 resistance level soon.

"Currently, yields are low, around 4%. This indicates the market has not reached a major top and could still push higher," Santiment reported Saturday. The forecast represents approximately 6.7% growth from $ETH's $2,991 price at publication time, according to CoinMarketCap data.

Stablecoin yields in lending protocols offer a gauge of market health and currently average roughly 3.9% to 4.5% across major platforms, Santiment noted. A surge in yields typically indicates an increase in speculative leverage, a pattern that has historically preceded major crypto market tops.

$ETH has posted a 21.32% decline over the past 30 days as part of a broader market downturn that began after the $19 billion #crypto market #liquidation event on Oct. 10. This followed shortly after U.S. President Donald #Trump announced 100% tariffs on Chinese goods.

Technical and flow-based signals are beginning to show early signs of recovery despite $ETH's recent price lag. Crypto analyst Matthew Hyland pointed out Saturday that the ETH-BTC Weekly is closing in on a bullish ribbon flip for the first time since July 2020.

Spot $ETH ETFs staged a turnaround this week, recording $312.6 million in net weekly inflows after three straight weeks of heavy withdrawals. The reversal marks a potential shift in institutional sentiment toward the asset.

Sentiment across the broader crypto market is also showing improvement. The Crypto Fear & Greed Index spent 18 days in Extreme Fear during November before moving up to a #Fear reading on Saturday, signaling some stabilization in market sentiment.