Ethereum Faces Short-Term Corrections but Maintains Long-Term Bullish Outlook

Despite a short-term increase in the price to around $3,670, skepticism about Ethereum's overbought condition persists among analysts. A CryptoQuant expert points out that current levels are still well below the peaks of March and November 2024, suggesting that a moderate correction might occur, though the overall market isn't considered overly bullish. Additionally, Ethereum's funding rate dynamics indicate sluggish activity but have reached an oversold zone, signaling a potential bottom. The analyst forecasts a continuation of growth into the second half of 2025. Investors are also actively pouring into spot ETH ETFs, with July inflows reaching $533.9 million — the third-highest in history, with major funds like BlackRock, Grayscale, and Fidelity leading. Meanwhile, capital is shifting from Bitcoin to altcoins, supporting a positive medium-term outlook for Ethereum. Overall, the outlook remains optimistic despite short-term corrections, with demand and investor sentiment still favoring Ethereum.