All molecules possess the London dispersion forces. However London dispersion forces is the only kind of intermolecular interaction that exists in nonpolar substances.
So, the only kind of intermolecular interaction that exists in dimethyl ether is London dispersion forces.
As for ethyl alcohol, the molecule is polar due to the presence of polar O-H bond. In addition to London dispersion forces, dipole-dipole interactions and specifically hydrogen bonding also occurs between the molecules.
Because ethyl alcohol is polar, it is more soluble in water than dimethyl ether.
