Do aircraft at cruise bob and/or skip?
It sounds very much what you're experiencing is a Phugoid cycle

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To put simply, your aircraft is not trimmed correctly. As it descends slightly it gains speed, which increases lift over the wing making it climb. This has the effect of it losing some speed, reducing the lift over the wing causing a descent, increasing the speed - and on it goes.
Full scale aircraft from light to airliner can and do experience the same thing. One notable case which comes to mind is the accident sequence of United Airlines 232 which lost all hydraulic pressure and thus had no control surfaces operational. They were controlling pitch (and roll) somewhat using engine power only, and thus did not have exact control of pitch and experienced significant Phugoid cycles.
Side note: You're unlikely to be experiencing ground effect at treetop height unless you have very tiny trees or very large wings.

When an aircraft flies at a ground level approximately at or below the half length of the aircraft's wingspan there occurs, depending on airfoil and aircraft design, an often noticeable ground effect
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