The stagnant movement in stablecoin yields shows that the market is not overheated yet. This increases the possibility that Ethereum may regain strength in the short term and rise toward the $3,200 level.

Leverage Pressure Remains Weak!

Santiment closely monitors the lending yields (APR rates) of major stablecoins such as USDT and USDC. These rates are considered critical because they generally reflect the leverage demand in the market. Currently, yields are moving between 3.9% and 4.5%, a range historically associated with low leverage usage.

In other words, investors are definitely avoiding aggressive positions. The market has not yet entered a phase of speculative excess, and this environment is thought to signal a period where prices still carry upward potential before forming a major peak.

This article may also interest you: BlackRock Keeps the Wheel Turning With Its Bitcoin ETF Profits!

Will Ethereum Rise?

Ethereum has dropped more than 21% in the past 30 days. The selling pressure caused by the massive $19 billion liquidation wave on October 10 still hasn’t fully disappeared from the markets. In addition, U.S. President Donald Trump’s new tariff plans on Chinese imports have significantly suppressed global risk appetite.

However, the picture has been changing in recent days. Spot Ethereum ETFs recorded a net inflow of $312.6 million. The three-week outflow trend has been broken, and institutional investor interest has returned. At the same time, technical indicators are strengthening day by day.

The analytics firm states that Ethereum was trading around $3,000 at the time of the report and that current on-chain dynamics suggest the asset may be preparing for a move toward $3,200. This indicates approximately a %7 upward potential from the current levels.

If a close below $3024 occurs, it was mentioned that Ethereum could experience an internal structural decline. Yesterday, this close happened, and the price pulled back to $3000. If it closes below $3000, a further decline toward the $2950–$2900 range appears likely. These levels seem more probable for a potential rebound.

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Ethereum price outlook strengthens

According to Santiment, stablecoin yields currently average between 3.9% and 4.5%. These relatively low returns suggest that risk appetite has not reached extreme levels across the crypto market. Historically, a sharp rise in stablecoin yields indicates a surge in speculative leverage, often appearing just before major market tops.

Santiment notes that today’s subdued yield environment leaves room for ETH to climb higher. Ether could gain roughly 6.7% from recent levels and retest the key $3,200 resistance zone. This scenario aligns with the recent decline in volatility and the easing of selling pressure seen across major exchanges. The combination of reduced leverage and improving liquidity supports a potential short-term recovery.

Technical indicators point to early ETH recovery

Ether fell 21.32% over the past 30 days, reflecting the broader market correction triggered after the sharp $19 billion liquidation event in early October. Despite the pullback, technical momentum is beginning to turn positive. Analyst Matthew Hyland highlighted that the ETH-BTC weekly chart is approaching a “bullish ribbon flip” for the first time since 2020, a pattern that historically signals relative strength for Ethereum.

Spot Ether ETFs also reversed their outflow trend this week. After three weeks of heavy withdrawals, ETFs recorded $312.6 million in net inflows. Growing institutional exposure is strengthening medium-term sentiment and adds weight to the bullish Ether price outlook. Combined with declining derivatives imbalance, these factors position ETH for a more sustained recovery attempt.

Market sentiment is slowly stabilizing

The broader crypto market is showing the first signs of sentiment recovery. The Crypto Fear & Greed Index spent 18 days in extreme fear during November before climbing back into the fear zone. This shift suggests that investor mood is stabilizing after weeks of pressure. Meanwhile, historical data from CoinGlass shows that December has delivered an average 6.85% return for ETH since 2013.

However, Bitcoin’s underperformance in typically strong months such as October and November raises questions about the reliability of seasonality this year. Even so, easing macro pressure, improving flows and low speculative leverage continue to support an upward Ether price outlook.

Key factors strengthening the short-term bullish view include:

• Low stablecoin yields supporting a healthier Ether price outlook
• Renewed ETF inflows signaling stronger institutional confidence
• A potential ETH-BTC bullish technical shift on the weekly chart

Together, these indicators point to a rising likelihood that ETH could revisit the $3,200 mark in the near term.

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