Ethereum sees short-term dip but long-term outlook remains strong, says Eugene analyst

Ethereum (ETH) may be in the middle of a short-term pullback, but its long-term outlook remains intact, according to a new report from South Korea–based Eugene Investment & Securities. Analyst Jo Tae-na pointed to a sharp uptick in stablecoin activity and on-chain transactions as signs of growing demand for the Ethereum network, a trend that's been driving both usage and fee revenue higher. With Ethereum’s supply already under pressure from the EIP-1559 burn mechanism and its switch to Proof of Stake (POS), more than 5.3 million ETH have been permanently removed from circulation. Jo said the combination of reduced issuance and continued network engagement is laying the groundwork for sustained price gains. Roughly 30% of all ETH is now staked, further tightening the available supply and boosting scarcity. At the same time, institutional money has begun flowing in at a rapid clip. Spot ETH ETFs saw over $5.4 billion in inflows during July alone, a sharp contrast to more sluggish activity in Bitcoin ETFs. Large-scale corporate purchases from firms like SharpLink Gaming and BitMine Immersion Technologies are also helping to keep long-term upward pressure on ETH prices, Jo added.