[proofplan]
The proof is a direct combination of two ingredients. First, the characteristic polynomial identity for a linear endomorphism of a two-dimensional [vector space](/page/Vector%20Space) expresses $\det(I_2-XA)$ in terms of the trace and determinant of $A$. Second, Deligne's construction of $\rho_{f,\lambda}$ identifies the trace and determinant of Frobenius at every prime $p \nmid N\ell$ with $a_p(f)$ and $\varepsilon(p)p^{k-1}$. Substituting these two values gives the displayed polynomial, and then setting $X=p^{-s}$ gives the stated good Euler factor.
[/proofplan]
[step:Express the determinant polynomial of a two-dimensional endomorphism through trace and determinant]
Let
\begin{align*}
A := \rho_{f,\lambda}(\operatorname{Frob}_p) \in GL_2(E_{f,\lambda}).
\end{align*}
Since $A$ is a $2 \times 2$ matrix over the field $E_{f,\lambda}$, write its entries as
\begin{align*}
A=
\begin{pmatrix}
\alpha & \beta\\
\gamma & \delta
\end{pmatrix},
\qquad
\alpha,\beta,\gamma,\delta \in E_{f,\lambda}.
\end{align*}
Then
\begin{align*}
\det(I_2-XA)
&=
\det
\begin{pmatrix}
1-\alpha X & -\beta X\\
-\gamma X & 1-\delta X
\end{pmatrix} \\
&=(1-\alpha X)(1-\delta X)-\beta\gamma X^2\\
&=1-(\alpha+\delta)X+(\alpha\delta-\beta\gamma)X^2\\
&=1-\operatorname{tr}(A)X+\det(A)X^2.
\end{align*}
[guided]
We first isolate the linear algebra from the arithmetic input. Define
\begin{align*}
A := \rho_{f,\lambda}(\operatorname{Frob}_p) \in GL_2(E_{f,\lambda}).
\end{align*}
The representation is two-dimensional, so $A$ is a $2 \times 2$ matrix after choosing an $E_{f,\lambda}$-basis. Write
\begin{align*}
A=
\begin{pmatrix}
\alpha & \beta\\
\gamma & \delta
\end{pmatrix},
\qquad
\alpha,\beta,\gamma,\delta \in E_{f,\lambda}.
\end{align*}
Now compute the determinant polynomial directly:
\begin{align*}
\det(I_2-XA)
&=
\det
\begin{pmatrix}
1-\alpha X & -\beta X\\
-\gamma X & 1-\delta X
\end{pmatrix} \\
&=(1-\alpha X)(1-\delta X)-(-\beta X)(-\gamma X)\\
&=(1-\alpha X)(1-\delta X)-\beta\gamma X^2\\
&=1-(\alpha+\delta)X+(\alpha\delta-\beta\gamma)X^2.
\end{align*}
By definition of trace and determinant for a $2 \times 2$ matrix,
\begin{align*}
\operatorname{tr}(A)=\alpha+\delta,
\qquad
\det(A)=\alpha\delta-\beta\gamma.
\end{align*}
Therefore
\begin{align*}
\det(I_2-XA)=1-\operatorname{tr}(A)X+\det(A)X^2.
\end{align*}
This is the exact polynomial identity that will convert Deligne's Frobenius trace and determinant formulas into the Euler factor.
[/guided]
[/step]
[step:Insert Deligne's trace and determinant formulas at good primes]
Because $p \nmid N\ell$, the representation $\rho_{f,\lambda}$ is unramified at $p$, so $\rho_{f,\lambda}(\operatorname{Frob}_p)$ is defined up to conjugacy. The determinant polynomial is conjugacy-invariant. By Deligne's trace and determinant formulas for the Galois representation attached to a normalized cuspidal eigenform (citing a result not yet in the wiki: Deligne's construction of the Galois representation attached to a modular eigenform),
\begin{align*}
\operatorname{tr}\left(\rho_{f,\lambda}(\operatorname{Frob}_p)\right)&=a_p(f),\\
\det\left(\rho_{f,\lambda}(\operatorname{Frob}_p)\right)&=\varepsilon(p)p^{k-1}.
\end{align*}
Substituting these two identities into the two-dimensional determinant formula gives
\begin{align*}
\det\left(I_2-X\rho_{f,\lambda}(\operatorname{Frob}_p)\right)
&=1-\operatorname{tr}\left(\rho_{f,\lambda}(\operatorname{Frob}_p)\right)X
+\det\left(\rho_{f,\lambda}(\operatorname{Frob}_p)\right)X^2\\
&=1-a_p(f)X+\varepsilon(p)p^{k-1}X^2.
\end{align*}
[guided]
The arithmetic input enters exactly at the good primes. Since $p \nmid N\ell$, the prime $p$ is outside both the level of the modular form and the residue characteristic of the coefficient field place $\lambda$. Deligne's representation is therefore unramified at $p$, so the conjugacy class of
\begin{align*}
\rho_{f,\lambda}(\operatorname{Frob}_p) \in GL_2(E_{f,\lambda})
\end{align*}
is well-defined. The expression $\det(I_2-XA)$ is unchanged when $A$ is replaced by a conjugate matrix, because determinant is invariant under conjugation:
\begin{align*}
\det(I_2-XBAB^{-1})
&=\det\left(B(I_2-XA)B^{-1}\right)\\
&=\det(B)\det(I_2-XA)\det(B^{-1})\\
&=\det(I_2-XA)
\end{align*}
for every $B \in GL_2(E_{f,\lambda})$. Thus the polynomial attached to Frobenius is independent of the chosen representative of the Frobenius conjugacy class.
Now use Deligne's trace and determinant formulas for the Galois representation attached to a normalized cuspidal eigenform (citing a result not yet in the wiki: Deligne's construction of the Galois representation attached to a modular eigenform). These formulas apply because $f$ is a normalized cuspidal Hecke eigenform and $p \nmid N\ell$. They give
\begin{align*}
\operatorname{tr}\left(\rho_{f,\lambda}(\operatorname{Frob}_p)\right)&=a_p(f),\\
\det\left(\rho_{f,\lambda}(\operatorname{Frob}_p)\right)&=\varepsilon(p)p^{k-1}.
\end{align*}
Combining these identities with the two-dimensional determinant formula from the previous step yields
\begin{align*}
\det\left(I_2-X\rho_{f,\lambda}(\operatorname{Frob}_p)\right)
&=1-\operatorname{tr}\left(\rho_{f,\lambda}(\operatorname{Frob}_p)\right)X
+\det\left(\rho_{f,\lambda}(\operatorname{Frob}_p)\right)X^2\\
&=1-a_p(f)X+\varepsilon(p)p^{k-1}X^2.
\end{align*}
This is precisely the asserted Frobenius polynomial.
[/guided]
[/step]
[step:Substitute $X=p^{-s}$ to recover the good Euler factor]
By the definition of the good local Euler factor attached to $\rho_{f,\lambda}$ at a prime $p \nmid N\ell$,
\begin{align*}
L_p(f,s):=\det\left(I_2-p^{-s}\rho_{f,\lambda}(\operatorname{Frob}_p)\right)^{-1}.
\end{align*}
This is obtained from the polynomial identity just proved by substituting $X=p^{-s}$. Hence
\begin{align*}
L_p(f,s)=\left(1-a_p(f)p^{-s}+\varepsilon(p)p^{k-1}p^{-2s}\right)^{-1}
=\det\left(I_2-p^{-s}\rho_{f,\lambda}(\operatorname{Frob}_p)\right)^{-1}.
\end{align*}
This proves both the Frobenius polynomial formula and the asserted expression for the good Euler factor.
[/step]