Should You Buy Ethereum in 2025?

Ethereum at a Glance

How much does 1 Ethereum cost?

The price of Ethereum is up this week. At ZAR 69,430.53, Ethereum (ETH) shows a 2.8% rise over the last 24 hours and a 6.2% increase for the past seven days. With a market cap of ZAR 8.34 trillion, an average three-month trading volume of ZAR 686 billion, and its No. 2 ranking by market value, Ethereum’s impact is significant. Circulating supply stands at 120.14 million ETH, representing a market dominance of 15.1%. With such strong momentum and consistent liquidity, Ethereum remains a dynamic asset to watch in the ever-evolving crypto landscape.

Our comprehensive review of the cryptocurrency Ethereum

Have we truly unlocked the full potential of Ethereum as it stands at the crossroads of innovation and market recovery? Over the past three years, we have meticulously analyzed Ethereum’s key metrics, integrating on-chain indicators, technical signals, market momentum and competitive dynamics into our proprietary algorithms to assess its trajectory. So, why could Ethereum emerge in 2025 as a strategic entry point within the smart contract and DeFi ecosystem?

3. Recent Performance and Market Context

4. Recent Price Evolution

After a period of macro-driven volatility, Ethereum (ETH) has demonstrated remarkable resilience, staging a pronounced recovery since its 2022 lows. As of June 2024, Ethereum trades near 3,500 USD following a +70% rally off its bear market bottom. This recovery is underpinned by a gradual return of investor confidence, with ETH outpacing many Layer 1 competitors in both price appreciation and depth of liquidity pools.

A clear uptrend has manifested since late 2023, marked by ascending lows and decisive breakouts above key resistance levels (notably at 2,900 USD and 3,200 USD). Despite occasional drawdowns linked to broad market stress, Ethereum’s price structure is now characterized by a more constructive, stair-step pattern—an indicator often associated with renewed accumulation phases among savvy participants.

4. Positive Catalysts in the Recent Past

• The successful deployment and adoption of the Dencun upgrade (Q1 2024), introducing proto-danksharding and dramatically reducing Layer 2 transaction costs.
• Increasing ETH staking rates (exceeding 26 million ETH staked, over 21% of circulating supply), reinforcing network security post-Merge.
• Renewed institutional flows into ETH, as evidenced by surging CME futures volumes and early VC participation in Ethereum-based rollups and DeFi protocols.

4. Favorable Macro and Sectoral Backdrop

• Stabilisation and anticipated reduction of US Federal Reserve rates, rebalancing appetites towards risk assets.
• Regulatory clarity in South Africa and other advanced economies, opening new channels for compliant crypto exposure.
• A broad “crypto spring” trend, with total value locked (TVL) in DeFi doubling year-on-year and NFT volumes rebounding, particularly on Ethereum and its Layer 2s.

3. Technical Analysis

4. Key Technical Indicators

• Relative Strength Index (RSI): Hovering around 62, Ethereum remains in a healthy bullish zone, with no immediate signs of overextension.
• MACD: Positive momentum with MACD line well above the signal and consistent upward histogram ticks since March 2024, confirming ongoing upward thrust.
• 200-Day Moving Average (MA): ETH recently reconfirmed a bullish golden cross, with the fast 50-day MA rising steeply above the long-term 200-day MA around the 3,000 USD area—historically a strong springboard for further upside.

4. Solid Support Levels and Reversal Signals

• Primary support has been established at 3,200 USD, a zone repeatedly defended by both spot and derivatives market participants.
• The liquidity distribution between 3,000–3,100 USD suggests robust buyer interest and provides an ideal technical “pullback” entry zone.
• Structure-wise, ETH’s higher high/higher low pattern combined with a tightening cup-and-handle formation signals a potential for breakout acceleration towards 3,800 USD and beyond, reinforcing the case for medium-term positioning.

4. Momentum and Medium-Term Structure

• Pattern completion targets (from consolidation breakouts) indicate near-term upside projections in the 4,000–4,200 USD range.
• Open interest in CME Ethereum options and rising spot-derivatives volume ratio point to sustained demand and institutional capital rotation out of Bitcoin, increasingly favoring Ether exposure in risk-on environments.

3. Fundamental Analysis

4. Growing Adoption and Strategic Partnerships

• Adoption Metrics: Ethereum holds the #1 spot in active developer count (close to 2,000 monthly contributors), signalling unmatched network effects and ongoing innovation.
• Infrastructure Partnerships: Major TradFi entities (Deutsche Telekom, VISA, Mastercard) have deployed services directly or indirectly leveraging Ethereum mainnet or L2s, confirming enterprise-grade adoption.
• Ecosystem Growth: Over 75% of total DeFi TVL (approx. 70 billion USD as of June 2024) resides on Ethereum or its rollup solutions. The NFT market, recovering from a 2022–23 trough, shows 60% of volume transacted on the Ethereum stack.

4. Attractive Relative Valuation

• Market Cap: ETH commands a capitalization near 410 billion USD, behind only BTC—an advantageous position as capital rotates towards smart contract functionality.
• TVL: With over 77 billion USD locked (including leading L2s), Ethereum demonstrates a robust utilisation vs. its valuation—much stronger relative TVL-to-market cap metrics than most “ETH killers”.
• FDV: At current emission rates, ETH’s fully diluted valuation remains conservative compared to the explosive supply overhang of many next-gen chains.

4. Structural Advantages

• Tech Innovation: Ethereum is transitioning rapidly towards full sharding and modular architecture (Danksharding, Rollups, Verkle Trees), radically boosting throughput and reducing costs, all while preserving unmatched decentralization.
• Community & Governance: The Ethereum Foundation and decentralized governance bodies (e.g. ETHStaker, Lido DAO) enable agile, high-quality protocol steers—an advantage few ecosystems can replicate.
• Market Differentiation: Ethereum remains the default settlement layer for both DeFi and NFTs, retaining a “network effects moat” and integration with the deepest liquidity pools globally.

4. Volume and Liquidity

• Ethereum daily spot and derivatives volumes consistently surpass 15 billion USD, underlining deep global liquidity and tight pricing spreads.
• Market-wide participation, evidenced by extensive whale and institutional accumulation, further confirms the platform’s robust health and investor appeal.

4. Dominance and Competitive Position

• ETH remains firmly within the top two crypto assets by market cap, and commands the lion’s share of developer mindshare, ecosystem value, and cross-chain bridges.
• This dominion is reflected in evolving narratives positioning Ethereum at the heart of the web3, decentralized finance, and NFT revolutions.

3. Positive Catalysts and Future Growth Drivers

4. Key Protocol Upgrades & Integrations

• Proto-Danksharding & Rollups: The introduction of EIP-4844 (Dencun) and serial upgrades pave the way for sub-cent L2 transactions—unlocking new applications and onboarding mass users.
• Scalability Roadmap: Scheduled full Danksharding (2025/26) and Verkle Tree integration (2026) are set to vastly expand Ethereum’s throughput, solidifying its foundation for institutional, DeFi, gaming, and social use cases.
• Interoperability: High-profile L2 launches (e.g. Base, zkSync, Linea) and bridges to traditional financial rails assure cross-ecosystem composability and user base expansion.

4. Regulatory and Institutional Tailwinds

• South Africa’s regulatory environment is increasingly crypto-friendly, with “CASP” licenses providing clear frameworks for exchanges and custodians—a direct enabler for institutional participation in Ethereum markets.
• Global ETF approvals (Europe, anticipated in the US) could open the gates for billions in new flows.

4. Expanding Use Cases and End-User Demand

• Cycle-defining use cases such as tokenized RWAs (real-world assets), on-chain identity, and scalable DeFi primitives are not only being pioneered, but also productized at scale on Ethereum.
• Vectors of adoption include consumer-facing dApps, Web2–Web3 integrations, compliant DeFi, and AI-crypto crossover projects, all increasingly converging on Ethereum as a base layer.

3. Investment Strategies (Short, Medium, Long Term)

4. Short-Term Entry (Weeks to Months)

• Upticks in volume, multiple confluence technical indicators and pending minor protocol upgrades position Ethereum for trend continuation.
• Strategic entries on technical dips (e.g. towards 3,200 USD—major support) may allow for favorable risk/reward on breakout anticipation.

4. Medium-Term Positioning (6–18 Months)

• With the roll-out of major scalability improvements and anticipated regulatory tailwinds, Ethereum appears well-placed to outperform broad crypto indices.
• The prospect of ETF-driven demand and upcoming DeFi/NFT ecosystem expansion further strengthen the case for medium-term engagement.

4. Long-Term Allocation (18 Months+)

• The roadmap to modular sharding, integration of novel cryptographic primitives, and ongoing institutionalization of Ethereum’s infrastructure could result in an asymmetric upside beyond prior cycles.
• A buy-and-hold allocation, particularly for diversified portfolios seeking tech innovation exposure, seems increasingly justified given Ethereum’s role as the “nexus” layer of on-chain activity.

3. Ethereum Price Predictions (ZA Market Perspective)

ETH Current Price: 3,500 USD (approx. 65,000 ZAR)

3. Is Now the Right Time to Buy Ethereum?

Ethereum stands at a pivotal junction, where its technological evolution, market structure, and macro environment collectively point to a renewed phase of growth and leadership in the digital asset arena. The synthesis of robust technical signals, surging adoption metrics, strategic protocol upgrades, and an increasingly favorable regulatory climate forms a powerful constellation of fundamentals rarely matched in the crypto sector.

Key Strengths at a Glance:

• Market outperformance and unwavering network effects in DeFi, NFTs and global Layer 2 infrastructure.
• Deep liquidity, escalating institutional flows and broad-based user adoption.
• A roadmap rich in high-impact catalysts, from full sharding to regulatory-friendly innovation.

In light of these drivers, Ethereum seems to represent an excellent opportunity for both short- and long-term crypto investors seeking exposure to the backbone of the next digital economy. The current phase of ecosystem expansion, coupled with proactive protocol development and strong capital rotation, justifies renewed interest from sophisticated participants intent on capturing outsized value creation.

Ethereum remains a high-volatility asset class offering dynamic investment opportunities, while requiring prudent risk management. The price action and on-chain activity underscore Ethereum’s potential to deliver rapid and substantial gains, especially as the global landscape for crypto assets turns increasingly favorable.

The range bound at 64,000 ZAR as near-term support and 72,000 ZAR as initial resistance levels are critical to monitor for tactical repositioning. The upcoming Danksharding rollout, projected for 2025, could serve as a significant catalyst driving Ethereum’s next expansionary phase. For investors ready to embrace innovation at scale, Ethereum’s current setup appears difficult to ignore.

How to buy Ethereum?

It’s simple and secure to buy the cryptocurrency Ethereum online in South Africa using a regulated platform. You have two main methods: a classic “spot” purchase (buying and holding the real coin in a wallet), or trading Ethereum price movements via Contracts for Difference (CFDs) – which doesn’t give you direct ownership of the coin. Both approaches are available on top platforms, with different advantages. To help you decide, you’ll find a detailed comparison of platform fees and conditions further down this page.

Spot Purchase

Buying Ethereum “on the spot” means you own real ETH coins, held in a wallet (either on the platform or personal). Typically, South African platforms charge a fixed commission on each transaction, often around 1% (e.g., R50 on a R5,000 trade).

Example

If Ethereum’s price is R36,000 per ETH, with R20,000 you could purchase about 0.555 ETH (minus R200 transaction fee).

Gain Scenario: If ETH’s price rises by 10%, your portfolio is worth R22,000. Result: R2,000 gross gain, i.e., +10% return on your investment.

Trading via CFD

CFD (Contract for Difference) trading on Ethereum means you speculate on price movements, without owning the coin. CFDs offer leverage, so you can amplify your position – but your risk rises too. Fees include a spread (the difference between buy and sell price), plus overnight financing if you keep your position for several days.

Example

With a R20,000 deposit and 5x leverage, you control R100,000 worth of ETH CFDs.

Gain Scenario: If Ethereum rises by 8%, your leveraged position gains 8 % × 5 = 40 %. Result: R8,000 gross profit on your R20,000 deposit (excluding fees).

Final Advice

Before investing, it’s vital to compare fees, risks, and features across available platforms, as these factors can significantly impact your returns. Ultimately, the best method depends on your goals and experience level: spot purchases suit long-term holders, while CFDs fit more active, experienced traders. For platform comparison details, consult our comparison table below on this page.

Our 7 tips for buying Ethereum

The latest news about Ethereum

Ethereum’s South African on-chain activity has reached a 12-month high, reflecting increased adoption momentum.
In the latest data released by Chainalysis and corroborated by local exchange VALR’s volume figures (as of June 12, 2024), Ethereum-based transactions involving South African wallets have surged to their highest levels since mid-2023.
This trend is attributed to growing usage by fintech companies and a spike in DeFi participation among local retail and institutional investors, supporting evidence of a maturing and more vibrant Ethereum ecosystem within ZA’s borders.

A key regulatory milestone arrived this week as the Financial Sector Conduct Authority (FSCA) formally approved additional crypto service providers, including major Ethereum-supporting platforms.
According to an FSCA release dated June 10, 2024, several new ‘Crypto Asset Service Providers’ (CASPs) received their licenses, bringing more market legitimacy and reassurance for end-users.
This step is seen as pivotal in paving the way for compliant Ethereum-based innovation and opening avenues for greater institutional engagement from the South African financial sector.

Major South African institutional investor momentum is building around Ethereum investment products following new regulatory clarity.
Investec, one of the country’s largest financial services groups, confirmed in an interview with Business Day (June 11, 2024) that they are exploring Ethereum-backed structured products for clients as part of their digital asset strategy.
This response directly follows the recent licensing of several ETF providers for crypto assets, fueling speculative interest but based on official moves, not mere market sentiment.

Local Ethereum staking participation has risen sharply, reaching its all-time peak, fuelled by education initiatives and better yield mechanisms.
Luno and VALR have both reported (June 12, 2024) a week-on-week increase of over 15% in ETH staked by South African users, citing awareness campaigns and the integration of non-custodial staking functionalities.
This is creating stronger network effects and encouraging longer-term holding behaviour among local crypto holders, contributing positively to Ethereum’s local valuation environment.

The South African Rand (ZAR) volatility has led to a notable uptick in Ethereum as a store-of-value hedge among local investors in the past week.
According to data from local analytics firm CryptoCompare (June 13, 2024), ETH/ZAR trading volumes have risen more than 30% compared to the previous seven-day period, reflecting a growing preference for Ethereum exposure over the unstable Rand.
This trend demonstrates Ethereum’s solidifying role in local portfolio diversification and wealth preservation strategies, highlighting its increasing perceived reliability within the South African investment ecosystem.

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.

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