Should You Buy Ethereum in 2025?

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At HelloSafe, our expert has been closely monitoring the evolution of Ethereum cryptocurrency for over three years. Every month, tens of thousands of users in New Zealand trust us to analyse market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical charter, HelloSafe has never purchased Ethereum nor received any compensation from entities associated with its ecosystem.

Ethereum at a glance

How much does 1 Ethereum cost?

The price of Ethereum is up this week. As of today, Ethereum trades at approximately NZ$4,085, with a 24-hour increase of +1.62% but a slight 1-week drop of -1.27%. Its market capitalisation stands at around NZ$493.2 billion, and the average three-month daily trading volume is about NZ$25.5 billion. Ethereum holds second place in global crypto rankings, with 120.72 million ETH in circulation and accounts for roughly 18% of the total crypto market. While Ethereum remains a market leader, its recent price swings highlight both the dynamic volatility and the ongoing investment opportunities in the crypto space.

Our full review of the cryptocurrency Ethereum

Have Ethereum's latest developments truly set the stage for a renewed growth cycle, or is its ecosystem merely consolidating before the next wave? Over the past three years, we have dissected Ethereum’s market trajectory using a proprietary blend of on-chain metrics, technical signals, macro data and competitive landscape insights. So, why could Ethereum once again represent a strategic entry point for the smart contract and DeFi sector in 2025?

Performance and Market Context

Recent Price Action

In June 2025, Ethereum (ETH) trades at 2,499.69 USD, with a market capitalisation of 301.81 billion USD and a 24-hour volume near 15.6 billion USD. Recent months have been marked by pronounced volatility: after a robust +37.96% surge over the past month, ETH remains down -34.45% year-on-year, reflecting both sector-specific consolidation and broader risk sentiment. Yet, the 14-day streak of net inflows into newly launched Ethereum ETFs, coupled with a historic rally in spot DeFi volumes, signals robust (and possibly resurging) institutional engagement.

Key Positive Events

• Pectra Upgrade (May 2025): This pivotal upgrade has dramatically enhanced network efficiency and scalability. Crucially, it triggered a $634 million influx into ETH ETFs, signifying persistent appetite from asset managers.
• Institutional Adoption: ETF creations are now consistently skewed towards ETH rather than BTC, as leading institutional investors like BlackRock allocate tens of millions into spot Ethereum.
• Regulatory Clarification: The SEC’s confirmation that Ethereum staking is not a securities transaction – combined with ongoing ETF staking proposals – has assuaged major regulatory risks.

Macro and Sector Tailwinds

The macro context is unusually supportive:

• Continued global inflation hedging is driving flows into digital assets, with investors seeking “blue-chip” blockchains offering utility and network effect.
• Ethereum continues to dominate DeFi, commanding 76% of tokenised asset TVL, and is the backbone for the NFT economy and layer 2 innovations.
• Technological advances—particularly around energy efficiency and transaction costs—render ETH not just “future-proof” but actively deflationary.

Technical Analysis

Relevant Indicators

• RSI (14d): Sitting at 51.1, ETH is in neutral territory—neither overbought nor oversold, suggesting the foundations for a new directional move without immediate exhaustion.
• MACD: Momentum remains slightly bearish to neutral (with the MACD line below signal), but convergence is visible, increasingly hinting at a reversal as price stabilises above the 50-day moving average.
• Moving Averages: Short-term MAs (20- and 50-day) trend above the long-term MAs, typically considered a constructive set-up. The 20-day MA at $2,573 signals resumed upward traction.

Support and Resistance

• Solid Support Level: $2,450 has repeatedly acted as a critical technical floor during recent volatility.
• Upper Barriers: The region around $2,656.50 forms the next pivot, but an extended breakout may see price test $4,013.83 (major resistance last seen in 2024).
• Reversal Signals: Market structure shows repeated higher lows since the recent correction—often a precursor to more decisive uptrends if confirmed by volume and macro inflows.

Short/Medium-term Momentum

Options flows point to pronounced bullish sentiment; the put/call ratio stands at 0.63 and open interest in options is weighted to upside strikes, while outflows from exchanges (lowest reserves in 7 years) hint at ongoing accumulation.

Fundamental Analysis

Strengthening Fundamentals

• Growing Adoption: Institutional flows are accelerating; 17.5 million ETH are staked, and ETF product demand is being met with tangible capital allocation.
• Strategic Partnerships: Integrations across traditional finance, DeFi and NFTs reinforce Ethereum’s reach. The Layer 2 ecosystem—Optimism, Arbitrum, and beyond—has slashed transaction fees, supporting user adoption.
• Ecosystem Development: Over 280,000 ERC-20 tokens have launched, with builders and startups converging around ETH as the de facto base layer.

Relative Valuation

• Market Capitalisation: At $301.8bn, ETH trades at a substantial discount to its all-time high, offering potential for mean reversion as network effects compound.
• On-Chain Metrics: Transaction volume for stablecoins is immense; $480bn cleared in May 2025 alone displays Ethereum’s scale in both retail and institutional markets.
• TVL Leadership: Ethereum continues to outpace rivals by controlling the largest share of DeFi TVL globally—it remains the trust anchor for new financial primitives.

Structural Advantages

• Deep liquidity and consistently high trading volumes ($15.6bn/24h) make ETH one of the least frictional digital assets, with ultra-tight spreads and ample order book depth.
• The shift to Proof of Stake has reduced energy consumption by 99.9%, appealing both to ESG mandates and to long-term sustainability narratives.
• The protocol’s baseline burn mechanism, post-EIP-1559, is actively reducing net ETH supply—an economic driver for scarcity over time.

Market Positioning

ETH’s dominance as the “programmable money” blockchain is challenged but not eclipsed by Solana, Cardano, or BNB Chain; its mature developer ecosystem and first-mover advantage confer persistent moats.

Volume, Liquidity, and Dominance

• Volume: ETH’s daily trading volume places it second only to BTC, facilitating large-scale institutional and speculative positioning with minimal slippage.
• Dominance: Ethereum's ongoing control of DeFi, NFT and tokenised asset flows has solidified its role as a “market of markets.”
• Order Book Resilience: Consistently deep liquidity pools underpin rapid execution for both short-term traders and portfolio allocators.

Positive Catalysts and Forward Momentum

Upcoming Upgrades and Integrations

• Further Layer 2 Advancements: Transaction costs will drop further as rollup adoption and stateless validation expand.
• Protocol Upgrades: EIP-7702 and “stateless nodes” aim to drastically improve throughput, lowering hardware and entry barriers for validators—directly enhancing decentralisation and resilience.
• DeFi/NFT Expansion: The relentless pace of NFT innovation and cross-chain interoperability increases Ethereum’s utility and relevance.

Regulatory Clarity and Institutional Interest

• The regulatory “green light” for staking unlocks an entirely new ETF market, with early proposals suggesting possible SEC approval for spot + staking ETF hybrids.
• Major buy-ins from BlackRock and other legacy financial players are cementing Ethereum as the “institutional” blockchain play alongside Bitcoin.

New Use Cases

• Real-world asset (RWA) tokenisation, supply chain finance, on-chain identity (ENS), and programmable stablecoins are broadening Ethereum’s addressable market far outside the crypto-native community.
• Monetisable AI protocols and decentralised physical infrastructure networks (DePIN) are beginning to migrate to (and build atop) ETH mainnet and L2s.

Investment Strategies

Entry Points by Investment Horizon

• Short-Term: Ethereum’s current price proximity to the $2,450 support and growing pre-upgrade momentum make dips to this region compelling for traders targeting 1-3 month rebounds.
• Medium-Term: ETF inflows, major protocol upgrades, and rising staking rates suggest ETH could retest $3,200–$4,000 as the ecosystem absorbs new capital and activity resumes cyclic expansion.
• Long-Term: Ethereum’s technological roadmap, deflationary mechanics, and dominance across programmable assets create a fundamental case for multi-year growth. Periods of technical consolidation, especially near key moving averages, remain historical springboards for new adoption-led rallies.

Tactical Positioning

• Accumulating on technical pullbacks towards major support, or ahead of confirmed protocol releases, has historically yielded strong risk-adjusted returns.
• Layered entries allow investors to build exposure into strength, deploying capital as key catalysts (ETF announcements, protocol upgrades, significant partnership deals) approach.

Ethereum Price Predictions

Is Now the Right Time to Consider Ethereum?

Ethereum’s robust bounce from local support, reinforced by historic ETF inflows and the seamless delivery of the Pectra upgrade, suggests structural momentum may be building. The fundamentals—dominance in DeFi/NFTs, protocol innovation, regulatory clarity, and institutional positioning—justify sustained renewed attention. As the only smart contract protocol fusing first-mover advantage, technical leadership, deflationary economics, and deep liquidity, Ethereum could well be embarking on a new growth chapter for the next digital finance cycle.

With leading indicators pointing towards a bullish inflection point and numerous macro/sector catalysts converging, Ethereum stands out as a high-potential opportunity to consider as part of a forward-looking, conviction-based allocation to the blockchain economy. Nonetheless, as with all digital assets, disciplined risk management and an adaptive approach remain essential to capturing the full benefits of this evolving market.

How to buy Ethereum?

It is straightforward and secure to buy the cryptocurrency Ethereum (ETH) online using a regulated platform, making it accessible even to first-time investors in New Zealand. There are two main methods available: spot buying (holding the real asset in your own wallet) and trading through crypto CFDs (Contracts for Difference), which track the price evolution without physical ownership. Each approach has distinct features and risk profiles, suitable for various investor goals. A detailed comparison of the best crypto platforms for New Zealand residents is provided further down this page.

Spot Purchase

Spot buying Ethereum means you directly acquire the actual ETH coins and store them in a personal wallet or on the exchange, becoming the outright owner. This is the most common way to invest in crypto for the long term. Fees typically involve a fixed transaction commission (often 1–2%) and sometimes a small network fee, all charged in NZD.

Example

If the price of Ethereum is $4,097 NZD per coin, with a $1,000 NZD investment, you can purchase approximately 0.244 ETH (after allowing for around $10 NZD in transaction fees).

Gain scenario

If the price of Ethereum rises by 10%, your holding would now be worth $1,100 NZD. Result: a $100 NZD gross gain, or +10% on your investment, reflecting the rise in the asset’s price.

Trading via CFD

CFD trading on Ethereum allows you to speculate on ETH’s price movements without directly owning the coins. This flexible method is popular for short- or medium-term strategies. You trade a financial contract whose value tracks ETH, and you can use leverage. Fees typically consist of the spread (the gap between buy and sell prices) and an overnight funding charge if you hold the position after market close.

Example

With $1,000 NZD and 5x leverage, you control an exposure of $5,000 NZD on Ethereum via CFDs.

Gain scenario

If Ethereum goes up by 8%, your position yields 8% × 5 = 40%, i.e., a gross profit of $400 NZD (excluding transaction and finance charges) on your $1,000 NZD initial outlay.

Final Tips

Always compare transaction fees, spreads, and account conditions between platforms before investing in Ethereum. The right method for you depends on your investment objectives and experience level. For a full, up-to-date comparison of leading NZ platforms and their features, refer to the detailed table lower on this page.

Our 7 tips for buying Ethereum

The latest news about Ethereum

Ethereum’s recent Pectra update has sharply improved network scalability and driven $634M of inflows to ETFs. This technical milestone, implemented on May 7, significantly lowered transaction costs and increased throughput, directly enhancing Ethereum’s competitive edge across global markets including New Zealand. The successful upgrade was reinforced by immediate institutional interest, exemplified by over $634 million in spot ETF inflows—pointing to surging confidence among global and regional investors in Ethereum’s prospects after the update.

New Zealand investors gained increased institutional credibility for Ethereum via ongoing ETF inflows and BlackRock’s direct ETH acquisition. Over the past week, spot Ethereum ETFs have seen fourteen consecutive days of net inflows, totaling $109.5 million, with BlackRock alone acquiring $34.7 million in ETH. This represents a growing shift in institutional attention from Bitcoin to Ethereum, a trend that New Zealand-based asset managers and retail investors can monitor for shifts in market allocation within domestic and Asia-Pacific crypto portfolios.

Regulatory clarity improved after SEC confirmed Ethereum staking is not a securities transaction, supporting Kiwi institutional adoption. The U.S. SEC’s recent clarification—that ETH staking does not constitute a securities transaction—provides an important de-risking signal applicable globally for compliance teams. For New Zealand exchanges and funds, this regulatory signal lowers the compliance barrier for introducing staking-related financial products, and ongoing discussions on ETF approval with staking further open doors for local innovation and investment vehicles.

Ethereum remains DeFi’s dominant platform, capturing 76% of all tokenized asset activity and strengthening its market position in Oceania. Ethereum’s robust DeFi ecosystem, measurable through $480 billion in stablecoin transactions and 17.5 million ETH staked in May, consolidates its reputation as the platform-of-choice for decentralized finance—often preferred by New Zealand DeFi users for liquidity depth and infrastructure maturity. This foundational dominance sustains positive network effects across regional and local projects building on Ethereum.

Market sentiment for Ethereum is constructive, driven by low exchange reserves and a strong put/call ratio indicating underlying bullishness. Technical analysis over the last seven days places Ethereum’s RSI in neutral territory, but other signals remain positive: major options expiries favored upward movement and exchange reserves are at a multi-year low—a sign of ongoing accumulation. With ETH layer-2 transactions consistently reducing network fees, the environment is increasingly favorable for New Zealand’s active trading community and institutional allocators.

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.