Should You Buy Ethereum in 2025?

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At HelloSafe, our expert has been tracking the evolution of the Ethereum cryptocurrency for over three years. Every month, hundreds of thousands of users across Australia trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical guidelines, HelloSafe has never purchased Ethereum or received compensation from any entities associated with its ecosystem.

Ethereum in brief

How much does 1 Ethereum cost?

The price of Ethereum is up this week. At the close on 7 June 2025, Ethereum (ETH) is trading at approximately A$3,765.50, with a 24-hour increase of +1.1% but a weekly dip of -1.7%. Its market capitalisation stands at about A$455.12 billion, making ETH the world’s second-largest cryptocurrency with around 120.72 million coins in circulation and a dominant 17.4% share of the total crypto market. Over the past three months, the average daily trading volume has reached A$24.25 billion. While price movements remain dynamic, Ethereum continues to attract strong institutional and retail interest, highlighting its investment potential amid a volatile landscape.

Our complete review of the cryptocurrency Ethereum

Have the last three years of Ethereum's evolution fundamentally set the stage for a new upward cycle? After analysing current on-chain dynamics, technical signals, macro trends, and a suite of proprietary market data models, it’s clear that Ethereum is at a pivotal moment. So, why could Ethereum re-emerge in 2025 as a strategic entry point within the decentralised finance and smart contract ecosystem?

Recent Performance and Market Context

Price Evolution: 2022–2025

Ethereum’s price action over the last three years demonstrates a cycle characteristic of maturing digital assets: periods of exuberance followed by necessary corrections and consolidations. From highs above $4,500 in late 2021, ETH experienced a pronounced correction alongside the broader digital asset landscape, with 2024–2025 confirming the “reset” phase as macro headwinds (notably interest rates and regulatory uncertainty) weighed on risk assets. As of early June 2025, Ethereum trades at $2,488.35 USD—a level reflective of both past exuberance and recent realism. While the 6-month and 1-year returns display a pullback (with -37.94% and -34.74% respectively), stabilisation is most evident since Q2 2025, supported by thickening order books and narrowing volatility bands.

Positive Recent Developments

• Pectra Upgrade Activated (May 2025): Marked by the leap in staking limits (from 32 to 2,048 ETH), Pectra increased network efficiency, user scalability, and further cemented Ethereum’s technical roadmap credibility.
• ETF Inflows: Unprecedented institutional flows—over $812 million net across 14 consecutive sessions, pushing assets under management in Ethereum ETFs to $9.4 billion. This matches a surge in institutional conviction and access for traditional investors.
• Network Records: Ethereum hit 19 million weekly active users in May 2025. The stablecoin market on Ethereum processed over $11 trillion YTD, and May alone saw $480 billion in on-chain stablecoin transfers.

Macro & Structural Tailwinds

The stabilisation of global monetary policy, inflation rolling over in key economies, and shifting regulatory narratives in the US, Europe, and APAC are catalysing renewed interest in tokenised assets. Ethereum, as the protocol underpinning over 76% of all asset tokenisation and more than half of DeFi’s total value locked (TVL), stands to benefit disproportionately from this sector-wide resurgence.

Technical Analysis

Key Crypto Indicators

• RSI (14-Day): Ranging between 46 and 59.2, ETH is neither overbought nor oversold, offering room for a directional move as new catalysts emerge.
• MACD: Several sessions of positive crossovers, underlining early momentum readiness.
• Moving Averages:
• 20-day EMA ($2,502) sits just above spot.
• 50-day ($2,330) and 100-day ($2,302) averages reinforce the recent consolidation base.
• The 200-day marks a key psychological and technical resistance.

Support & Reversal Signals

• Key Support: $2,620 is widely regarded as a robust structural support—recent price action has respected this level on multiple major drawdowns.
• Immediate Resistance: $2,656.50, with a more substantial resistance zone at $2,780.
• Short/Medium-Term Momentum: Successive higher lows combined with consolidating volatility suggest a build-up for potential breakout. The technical landscape, though still in recovery mode, displays structural readiness for further upward movement should macro and network trends persist.

Fundamental Analysis

Growing Adoption & Ecosystem Depth

• DeFi Leadership: Ethereum anchors 53% of global DeFi TVL ($46.3B), supporting over 280,000 ERC-20 tokens and remaining the reference layer for decentralised applications and non-fungible tokens (NFTs).
• Staking Flows: Over 32.8 million ETH are now staked (27% of eligible ETH), driving demand-supply dynamics and supporting native yields (3–4%).
• Institutional Integration: Institutional interest is surging, evidenced by ETF flows and a sharp uptick in demand from regulated investment vehicles globally.

Relative Valuation

• Market Cap: Near $300.47B, Ethereum comfortably sits as the second-largest cryptoasset, yet its market capitalisation versus addressable market (finance, tokenisation, stablecoins, digital identity) could be viewed as conservative, especially post-upgrade.
• TVL Ratio: With over half the DeFi sector’s TVL and dominance in tokenisation, ETH now serves as both “infrastructure” and “currency”—a duality that can justify higher valuations.
• Liquidity: Daily volumes are robust at $15.98B, outpacing most layer-1 competitors and ensuring ample market depth for both institutional and high-volume retail participants.

Structural Strengths

• Technological Differentiation: Leading the transition to proof-of-stake (PoS) with a ~99.9% decrease in network energy usage. The ambitious roadmap—ongoing sharding, Layer 2 innovations, and enhanced developer toolkits—underpins Ethereum’s sustainable advantage.
• Community & Governance: The Ethereum Foundation’s open development approach and global contributor base foster rapid, decentralised improvements, ensuring resilience and pace of innovation.

Market Position

Ethereum continues to control roughly 76% of all tokenised assets and remains the platform of choice for emerging sectors (DeFi, NFTs, tokenisation, decentralised identity). This dominance secures its status as the “base settlement layer” of the on-chain economy and gives ETH disproportionate exposure to sectoral growth.

Positive Catalysts & Outlook

• Protocol Upgrades: The successful Pectra upgrade lays foundations for greater throughput and staking flexibility, broadening Ethereum’s investor and user base.
• ETF Expansion: Continued institutional product launches and inflows provide robust tailwinds.
• Layer 2 Adoption: With scaling solutions maturing and gas fees moderating, user experience and throughput are improving.
• Regulatory Climate: Increasing regulatory clarity in AU, Europe, and select APAC markets is fostering institutional trust and product development.
• Tokenisation & Real-World Assets: Ethereum is the preferred platform for tokenising real-world assets (RWAs), a growth vertical that could multiply addressable demand significantly over the next cycle.

Investment Strategies (Short, Medium and Long-Term Horizons)

Short-Term (Weeks–Few Months)

• Technical Opportunism: The current price consolidation near the $2,500 support and under key resistance offers room for tactical entries, especially for traders seeking to capture volatility amid ETF and protocol upgrade-driven news cycles.
• Event-Driven Positioning: Entering positions ahead of upcoming Layer 2 deployments or regulatory breakthroughs could prove especially advantageous.

Medium-Term (Months–18 Months)

• Momentum Accumulation: Ethereum’s persistent dominance in TVL, Layer 2 migration, and corporate tokenisation projects provide structural floors to price. Investors looking for momentum set-ups should monitor breakouts above $2,780, especially on sustained volume surges.
• Staking Yield Strategies: With >3% annualised staking yields, ETH can serve as a “yield-generative” crypto blue chip—compounding returns in parallel with potential price appreciation.

Long-Term (>18 Months)

• Thematic Growth Exposure: Ethereum’s role at the heart of RWAs, programmable finance, and Web3 utility provides unique, high-beta exposure to secular digital asset adoption.
• Strategic Accumulation on Weakness: For allocators with extended horizons, technical re-tests of major supports (e.g., escalation near or below the $2,500 area) or “pre-upgrade” phases—when price tends to under-appreciate upcoming changes—represent historically attractive entry zones.
• Diversified Portfolio Hedge: ETH adds value as a diversifier versus traditional assets and as a liquid synthetic exposure to the decentralised future of finance.

Ethereum Price Forecast

Is Now the Right Time to Consider Ethereum?

Summary of Strengths & Conviction

• Ethereum dominates the decentralised ecosystem, controls the lion’s share of global tokenised asset flow, and constantly evolves through protocol innovation.
• The recent Pectra upgrade and surging institutional activity—evidenced by record ETF inflows and global liquidity—substantiate growing market conviction and confidence in Ethereum’s future.
• Structural trends such as the migration to proof-of-stake, deep developer network, and integration into traditional financial products create a robust platform for further adoption and value creation.
• Network fundamentals remain compelling: high transaction volumes, solid staking metrics, broad application landscape.

Optimistic Outlook & Strategic Opportunity

The technical set-up, combined with Ethereum’s unique role in the digital value chain, supports the thesis that we may be approaching an inflection point. The multi-year projections underscore the potential for significant value appreciation amid improving fundamentals and macro tailwinds. As regulatory clarity advances and the use cases for smart contracts, DeFi, and tokenised assets multiply, the fundamental case for Ethereum strengthens markedly.

Ethereum remains a high-volatility asset, demanding disciplined risk management, but offers dynamic investment opportunities with outsized growth potential. The acceleration in institutional flows and technological progress demonstrate Ethereum’s capacity to generate swift, decisive moves—yet the evolving macro environment also warrants continued selectivity.

Key technical levels to monitor for confirmation of a sustained move are $2,620 as immediate support and $2,780 as a primary upward target. The anticipated protocol upgrades over the next 18 months, coupled with the global adoption momentum, could serve as critical catalysts for Ethereum’s next growth phase.

In this context, Ethereum’s fundamentals justify a renewed and considered attention for investors aiming to position themselves at the frontier of digital finance evolution.

How to buy Ethereum?

Buying Ethereum online has become simple and secure for Australian investors, thanks to regulated crypto platforms. There are two main ways to invest: buying Ethereum "spot" (meaning you actually own the coins in a wallet) or trading Ethereum via Contracts for Difference (CFDs), where you speculate on price changes without owning the asset. Each method has its own structure for fees, control, and risks. Below, you’ll find a detailed comparison of each approach—as well as a helpful platform comparison table further down the page.

Spot Purchase

A spot purchase means you directly own actual Ethereum coins, stored in a digital wallet (like MetaMask or a secure exchange wallet). This is the most straightforward way to invest: you buy ETH at the current market price and hold it.
Typical fees: Most Aussie crypto exchanges charge a flat commission or a small percentage per transaction, usually deducted in Australian dollars (AUD). For example, suppose Ethereum is trading at $2,488.35 USD (about $3,700 AUD). With an AUD 1,000 investment, you could buy roughly 0.27 ETH, accounting for an average transaction fee around $7 AUD.

Spot purchase example

Example:
- You invest AUD 1,000
- Price of ETH: $3,700 AUD
- You receive ≈ 0.27 ETH
- Transaction fee: ~AUD 7

Spot gain scenario

Gain scenario:
If Ethereum’s price rises by 10%, your ETH will be worth about AUD 1,100.
Result: +AUD 100 gross gain (+10% on your investment).

Trading via CFD

CFD trading lets you speculate on Ethereum’s price through financial contracts, without actually owning the coin. You can "go long" (betting on price increase) or "go short" (betting on price decrease).
Fees: Platforms charge a spread (the difference between buy/sell price), and if you keep your position overnight, extra funding fees apply.

CFD leverage example

Example with leverage:
- Place AUD 1,000 on an ETH CFD with 5x leverage
- Your market exposure becomes AUD 5,000
- If ETH rises by 8%, your return is 8% × 5 = 40%
- Result: +AUD 400 gain on your AUD 1,000 position (before fees)

CFD risk note

Risk note:
CFDs magnify both gains and losses. You don’t own Ethereum, and your capital is at higher risk (especially with leverage).

Key Advice Before You Invest

Always compare the fees, terms, and security measures of each platform before choosing where to invest in Ethereum. The best method for you will depend on your investment goals and experience—whether you prefer owning ETH directly or trading its price through CFDs. To make an informed decision, scroll down for our detailed platform comparator tailored for Australia.

Our 7 tips for buying Ethereum

The latest news about Ethereum

Australian crypto ETF inflows boost Ethereum's institutional profile and local investor exposure this week. Recent trading data confirms significant inflows into Ethereum spot ETFs traded on local and international platforms accessible from Australia, including a net $25.3 million on 6 June and a record $812 million over 14 consecutive sessions. These flows represent growing institutional and retail confidence in the asset class, reflecting a positive shift in sentiment among Australian investors who are increasingly integrating Ethereum exposures via regulated investment vehicles. The robust ETF inflows are indicative of strong demand in the Australian market, facilitated by the country’s crypto-friendly regulatory stance and increasing product offerings on platforms available to Australian investors.

Pectra upgrade successfully activated, with immediate positive implications for Eth2 staking and network efficiency. On 7 May 2025, Ethereum’s major Pectra upgrade went live, fundamentally improving protocol scalability and validator functionality by increasing the staking cap from 32 ETH to 2,048 ETH. This technical milestone benefits Australian institutional participants and crypto funds now able to manage larger staking pools more efficiently, thereby unlocking greater yields and reducing administrative complexity. Early network metrics show record levels of weekly active users and an improved user experience, supporting further growth in Ethereum-based products accessible to the Australian DeFi community.

Ethereum maintains undisputed leadership in tokenized assets and DeFi, with strong engagement from the local financial sector. Ethereum continues to dominate with a 76% market share in asset tokenization and 53% of global DeFi TVL (Total Value Locked), amounting to over $46 billion. Australian fintech startups and established banks are increasingly exploring Ethereum’s ecosystem for tokenization pilots, stablecoin issuance, and decentralized finance integrations, aligning with policy signals from Australian financial regulators advocating for technology-neutral approaches to digital asset innovation. The broad and growing range of ERC-20 tokens and NFT projects also attract developers and investors within Australia’s rapidly maturing crypto sector.

Network utilization surges, with Australian trading platforms reporting record stablecoin and user activity growth. Network performance data for May 2025 shows Ethereum supporting 19 million weekly active users globally and facilitating $480 billion in stablecoin transfers during the month. Major Australian exchanges and wallet providers have cited surges in user sign-ups and transaction volumes, attributed in part to Ethereum’s full integration with Layer 2 solutions and improved cost efficiencies post-Pectra. These developments further solidify ETH’s position as Australia’s preferred platform for both retail and institutional blockchain activity.

Technical momentum for Ethereum is affirming a positive mid-term outlook for Australian investors and market professionals. Technical indicators are generally neutral to mildly bullish, with the 14-day RSI in the 46–59.2 range and upward pressure evident in moving average trends (20-day EMA above current spot price). Market sentiment is solidly optimistic, supported by 82% of community members exhibiting a bullish outlook and continued accumulation by Australian and global funds. This backdrop, combined with progressive regulatory developments in Australia, underpins constructive conditions for Ethereum’s local performance as both a digital asset and blockchain infrastructure for the coming months.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.