Ethereum Price Outlook: Short-Term Dip, Long-Term Bullish Trend Continues

In my view, while Ethereum is presently experiencing a short-term correction, the long-term outlook remains bullish. The recent surge in stablecoin trading and on-chain activities has led to increased network usage and higher transaction fee revenues, which are positive indicators for price growth. The implementation of the EIP-1559 burning policy and the transition to Proof of Stake (PoS) have significantly reduced ETH supply, with approximately 5.3 million ETH being burned to date. This reduction in circulating supply, coupled with continuous network activity, suggests sustained upward pressure on ETH prices. Additionally, around 30% of ETH is now staked, which limits the available circulating supply and enhances scarcity, supporting higher prices. Furthermore, institutional investor interest is intensifying, with substantial inflows into ETH spot ETFs—over $5.4 billion in July alone—highlighting growing mainstream adoption and confidence. Large-scale corporate purchases by firms like Shaplink and Bitmain are also exerting long-term upward pressure on ETH prices. Overall, these factors strengthen my conviction that, despite the short-term correction, Ethereum's price will continue its upward trajectory in the long run, driven by supply reduction, increased on-chain activity, and institutional interest.