Ethereum (ETH) remains one of the most influential digital assets in the cryptocurrency space, second only to Bitcoin (BTC) in market capitalization. As global financial systems evolve and investor sentiment shifts, many are asking: Is now a good time to buy Ethereum? With recent technological upgrades, shifting market dynamics, and growing environmental awareness, ETH is more than just a speculative asset—it’s a foundational layer for decentralized applications and smart contracts.
This article explores the current state of Ethereum, expert insights on its future, and key factors influencing its value—helping you make a well-informed decision.
Understanding Ethereum vs. Ether (ETH)
While often used interchangeably, Ethereum refers to the blockchain platform itself—a decentralized network that supports smart contracts and decentralized applications (dApps). Ether (ETH) is the native cryptocurrency that powers transactions and computational operations on the network.
Unlike Bitcoin, which primarily functions as a store of value, Ethereum serves as an infrastructure layer for innovation in decentralized finance (DeFi), non-fungible tokens (NFTs), and Web3 applications. This utility-driven model strengthens its long-term relevance.
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The Shift to Proof-of-Stake: A Game-Changer
One of Ethereum’s most significant milestones was The Merge in September 2022, which transitioned the network from energy-intensive Proof-of-Work (PoW) to eco-friendly Proof-of-Stake (PoS). This upgrade reduced Ethereum’s energy consumption by 99.95%, making it one of the most sustainable blockchains.
This shift not only improved environmental sustainability but also introduced deflationary mechanics. New ETH issuance dropped dramatically, while transaction fees began to be partially burned—permanently removing coins from circulation.
ETH Supply Trends: Inflation vs. Deflation
Since The Merge, Ethereum has seen a net reduction in supply. Over $115 million worth of ETH has been burned, while Bitcoin’s supply increased by over $5.5 billion during the same period. With fewer coins available and growing demand, this deflationary pressure could support long-term price appreciation.
Some analysts now refer to Ethereum as "UltraSound Money", contrasting it with Bitcoin’s “sound money” narrative—highlighting its shrinking supply and increasing scarcity.
The Shanghai Upgrade: Unlocking Staked ETH
In March 2023, the Shanghai upgrade allowed users to withdraw staked ETH for the first time. Prior to this, stakers had to lock up their assets indefinitely, limiting participation.
Now, institutions and retail investors can stake ETH with confidence, knowing they can exit when needed. This flexibility is expected to drive higher staking adoption.
Currently, only 14% of ETH’s total supply is staked, compared to over 70% on other PoS blockchains like Solana and Cardano. This gap suggests significant room for growth—potentially increasing demand as more users stake their holdings.
Expert Opinions on Ethereum’s Future
Tommy Honan – Swyftx
Tommy Honan, Head of Commercial Operations at Swyftx, believes Ethereum’s developer-friendly ecosystem gives it a strong fundamental edge.
“Most breakout blockchain projects today are built on Ethereum. If you value fundamentals over hype, ETH looks like a solid long-term play.”
He notes that Australian investors have been aggressive buyers, with over 70% of ETH trades on Swyftx being buy orders. While short-term price movements post-Shanghai are uncertain, the upgrade could incentivize more staking and network participation.
Dominic Gluchowski – CoinJar
Dominic Gluchowski, CMO of CoinJar, expects short-term volatility, possibly seeing ETH dip by the end of Q1 2024. However, he remains optimistic about its medium- to long-term outlook.
“Ethereum’s robust network effect and deflationary tokenomics position it well for future growth.”
He highlights the correlation between crypto and U.S. stock markets, especially during Federal Reserve interest rate shifts—making macroeconomic trends a key driver.
Dr. John Hawkins – University of Canberra
Dr. John Hawkins offers a more skeptical view. While acknowledging Ethereum’s superior utility and environmental improvements over Bitcoin, he questions its long-term viability.
“Cryptocurrencies like ETH move closely with Bitcoin—driven more by speculation than fundamentals.”
He argues that central bank digital currencies (CBDCs) could eventually replace private cryptocurrencies in use cases like smart contracts due to their stability and regulatory backing.
Nicolas Merton – Datadash
Technical analyst Nicolas Merton sees potential for a downward correction despite long-term bullish trends.
“Ethereum has held up well, but I believe we’re heading for a broader move to the downside.”
His analysis focuses on price chart patterns, suggesting caution in the near term.
Sean Foley – Macquarie University
Professor Sean Foley takes a bullish stance, comparing Ethereum to investing in internet infrastructure rather than a single payment network like Visa.
“There’s always demand for gas—the fundamental building block of Ethereum.”
He emphasizes the importance of the Shanghai upgrade in unlocking institutional staking and reducing supply—both of which could drive future price growth.
What You Should Know About Staking ETH
Staking ETH is akin to earning interest on a savings account. Validators lock up ETH to help secure the network and are rewarded with additional tokens. However, staking carries risks:
- Market volatility: If ETH’s price drops, staking rewards may not offset losses.
- Lock-up periods: Although lifted post-Shanghai, temporary withdrawal restrictions may return during network stress.
- Slashing penalties: Validators can lose funds for malicious or erroneous behavior.
Still, with low staking adoption so far, the potential for growth remains strong—especially as institutional interest rises.
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Key Considerations Before Buying ETH
- Volatility: Cryptocurrencies are highly volatile. Prices can swing dramatically in short periods.
- Regulatory risks: Governments worldwide are tightening crypto regulations, which could impact adoption.
- Market cycles: We may still be in a bear market. Timing the market is difficult; dollar-cost averaging may be a safer approach.
- Use case strength: Ethereum’s real-world applications in DeFi, NFTs, and dApps give it stronger fundamentals than many altcoins.
Frequently Asked Questions (FAQ)
Q: What is the difference between Ethereum and Ether?
A: Ethereum is the blockchain platform; Ether (ETH) is the cryptocurrency used to power transactions and smart contracts on that network.
Q: Is Ethereum environmentally friendly?
A: Yes. Since switching to Proof-of-Stake in 2022, Ethereum’s energy use dropped by 99.95%, making it far more sustainable than Bitcoin.
Q: Can I earn passive income with ETH?
A: Yes. By staking your ETH, you can earn annual percentage yields (APY) while helping secure the network.
Q: Will Ethereum ever surpass Bitcoin in value?
A: Some call this potential event “the flippening,” but opinions are divided. While ETH has stronger utility, BTC remains dominant as a store of value.
Q: What impact did the Shanghai upgrade have?
A: It allowed stakers to withdraw their ETH for the first time, increasing liquidity and encouraging broader participation in staking.
Q: Is now a good time to buy Ethereum?
A: It depends on your investment goals. With strong fundamentals, deflationary supply, and growing adoption, ETH shows long-term promise—but short-term volatility remains high.
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Final Thoughts
Ethereum stands at a pivotal moment. With technological advancements like The Merge and the Shanghai upgrade, improved energy efficiency, deflationary supply dynamics, and widespread developer adoption, its long-term outlook appears strong.
While short-term price movements remain uncertain—and influenced by macroeconomic factors like interest rates and market sentiment—the underlying fundamentals suggest Ethereum is more than just a speculative asset.
As always, do your own research (DYOR), assess your risk tolerance, and consider consulting a financial advisor before investing.
Whether you're drawn to its technological innovation, staking rewards, or role in the future of decentralized systems, Ethereum continues to be one of the most compelling digital assets in 2025.
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