I Bought The Ether Dip: Here's How To Play ETH

Summary I rate ETH a buy, citing bullish fundamentals, strong technicals, and supportive macro trends for a year-end rally. Regulatory clarity from the GENIUS Act and SEC's Project Crypto boost legitimacy and institutional adoption of Ethereum. Retail and institutional interest in ether is rising, with Google Trends and ARK Invest's positions signaling growing momentum. ETH's technical setup is attractive, with $4100 as key support; a breakout above $4866 could trigger significant upside into 2025. Earlier this month, I outlined a cautious near-term stance on bitcoin . I own the iShares Bitcoin Trust ETF ( IBIT ) and recently took a position in the iShares Ethereum Trust ETF ( ETHA ). Today, I’m analyzing ether, the native cryptocurrency of the Ethereum network. To preface, I am not a crypto expert, but I like to think I’m savvy with charts and broader macro trends. So, let’s take a look at the Grayscale Ethereum Mini Trust ETF ( ETH ). I have a buy rating on the product. I see a slew of bullish fundamental developments in recent months, while the chart sets up well for a year-end rally. You might recall that Fundstrat’s Tom Lee sent shockwaves across the investment world in August, calling for a $10,000 to $12,000 price target by the end of 2025. I’m not sure if I see that much upside, but with ether tagging key support, I think a bounce is quite likely over the ensuing months. ETH-USD, Bitcoin Outpacing the S&P 500 YTD StockCharts.com According to the issuer , ETH is solely and passively invested in ether. Its investment objective is to reflect the value of ether held by the Fund, less expenses and other liabilities. Ether is a digital asset that is created and transmitted through the operations of the peer-to-peer Ethereum Network, a decentralized network of computers that operates on cryptographic protocols. The Ethereum Network allows people to exchange tokens of value, called ether, which are recorded on a public transaction ledger known as a blockchain. ETH is a moderate-sized ETF with $2.9 billion in assets under management as of August 19, 2025. Its annual expense ratio is low at just 15 basis points, and there is, of course, no yield. The fund’s share price momentum is very strong, earning it a stellar A+ ETF Grade in that category by Seeking Alpha’s quantitative scoring system. Historical standard deviation metrics are very high, however, so it is a highly risky product . Finally, from a liquidity perspective , tradability is solid—average daily volume is above 3 million shares, while the 30-day median bid/ask spread is just three basis points per Grayscale. Now, turning to the bullish catalysts. In July, President Trump signed the GENIUS Act into law, effectively standardizing digital currencies, paving the way for wider adoption. Its passage helped bring about a fresh wave of crypto buying, with particular gains in ether. The Act brings clarity and legitimacy for stablecoins, specifically, and that should open the floodgates for wider crypto volumes, along with more institutional usage of blockchain technology and networks. The GENIUS Act's Passage Was A Watershed Moment For Crypto The White House At about the same time, the US Securities and Exchange Commission (SEC) embarked on its Project Crypto. Its aim is to establish a regulatory framework for crypto trading by giving guidance to big banks and other firms to merge onto the blockchain. The SEC will coordinate with the US Commodities Futures Trading Commission (CFTC) to offer further directives and rulemaking across the cryptosphere. The SEC Launches "Project Crypto" SEC With this regulatory lattice taking shape, one of ether’s biggest champions, Cathie Wood of ARK Invest, has outlined her bull case. She sees Ethereum becoming the primary institutional protocol. ARK ETFs have reportedly taken sizable stakes in ether, too. Cathie Wood Takes a "Solid Position" in ETH-USD X Tom Lee and Cathie Wood are obviously on board, but how is retail interest? It’s perking up, at least according to Google Search trends. Around the world, there has been a major jump in searches for “Ethereum” and “eth.” Thus, I assert that dips will be buying opportunities, particularly if we see a new all-time high in ether (more on that to come). The FOMO effect could take root. Google Trends: Ethereum and ETH Shoot Higher This Summer Google As far as large global portfolio managers’ holdings, crypto is just a small piece of the pie. According to the August 2025 BofA Global Research Global Fund Manager Survey, just 9% of investors own crypto assets of any kind. The average crypto allocation among that small group is just 3.2%. While the entire cryptocurrency market cap is only near $4 trillion, investors remain lightly allocated to the niche. BofA FMS: Light Allocation to Crypto BofA Global Research Seasonally, ether has tended to trade poorly in September, so this is a notable risk heading into the end of the third quarter. ETH-USD: Weak September Seasonality Barchart The Technical Take As regulatory frameworks get enacted and institutions begin to embrace ether, the technical situation offers a solid opportunity today, in my opinion. Notice in the chart below that ETH-USD pulled back to key support at the previous resistance level of $4100. I, in fact, added ether exposure on Tuesday, so I’m putting my money where my mouth is. Still, I’d like to see the world’s second-largest cryptocurrency climb above its November 2021 all-time high of $4866. If that were to occur, then Tom Lee’s forecast of a five-figure price could come into play. Another potential price target is near $6800. Here’s how I calculate that: If we take the $2700 depth of the December 2024 to April 2025 plunge and add that on top of the $4100 breakout that took place recently, then we get $6800. I like that the long-term 200-day moving average is back on the rise, while a high amount of volume by price is now below the current level. Moreover, take a look at the RSI momentum oscillator at the top of the graph—it is ranging in a bullish zone between 40 and 90, just as price retreats to the polarity point. For now, $4100 is support, and $4800-$4900 is resistance. ETH-USD: $4100 Critical Support, All-Time High Remains Resistance StockCharts.com The Bottom Line I have a buy rating on ETH, the low-cost ether ETF. I view it as just as solid as ETHA, which I bought this week. Given wider Ethereum adoption and bullish technical signals, this highly volatile cryptocurrency appears poised for gains into the end of 2025.