Ethereum's recent network activity and growing adoption of layer-2 scaling solutions are contributing to a bullish outlook for ETH, with potential to push the price toward $3,000. Despite a volatile July, where Ethereum faced a sharp decline and subsequent recovery, recent data shows a surge in decentralised application (DApp) activity and an increase in the total value locked (TVL) on the network. Ethereum's layer-2 solutions like Arbitrum and Optimism have hit record-high transaction volumes, reducing pressure on the main network and strengthening the case for a price rally. Moreover, although the Ethereum network became slightly inflationary in the second quarter of 2024 due to a slowdown in activity, the overall increase in network use and scaling advancements are setting the stage for further gains in ETH's price.This positive momentum is further supported by traditional finance investors’ growing confidence that the U.S. Federal Reserve may cut interest rates in 2024, which could enhance risk markets, including Ethereum. However, some challenges remain, such as the impact of spot Ether ETF outflows, which have been a drag on performance but may stabilise as the market adjusts​.