Citigroup makes cautious ETH price forecast based more on market sentiment analysis than actual network activity.
Citigroup has just released a report predicting that ether (ETH) will reach $ 4,300 by the end of 2025, reflecting the bank's cautious view on the short-term prospects of the world's second-largest cryptocurrency. According to Citi's analysis, ETH 's recent surge is more due to investor optimism than actual activity on the Ethereum network.
The bank stressed that the current price is higher than estimates based on actual activity levels, which could be driven by recent buying pressure and excitement around potential use cases. Citi presented three different scenarios to reflect possible volatility in the cryptocurrency market.
Citi's base case targets $4,300 based on current conditions, while the bullish case could push the price to $6,400 if adoption accelerates. Conversely, the bearish case forecasts a drop to $2,200 if macroeconomic and equity market conditions weaken.
Divergence in forecasts from financial institutions
Citi's view contrasts sharply with more optimistic forecasts from other financial institutions. Standard Chartered raised its year-end forecast for ETH to $7,500 from $4,000, citing stronger corporate participation and expectations for significant stablecoin growth. The bank predicts the stablecoin market could expand eightfold by 2028, driving demand and transaction fees on the Ethereum network.
Fundstrat Capital is even more bullish, with CIO Tom Lee setting a year-end target of $10,000 to $12,000, leaning towards an extremely bullish scenario. Meanwhile, Finder's survey of 24 crypto industry experts found that the Medium ETH forecast was $4,308 by the end of 2025, rising to $10,882 by 2030 and $22,374 by 2035.
Citi also highlighted the core difference between ETH and bitcoin, as ether can be Stake to generate yield while supporting the network. However, the bank forecasts that ETF Capital into ETH will be less than bitcoin, which could limit institutional scalability.
The range of forecasts ranging from pessimistic to extremely optimistic reflects the great uncertainty surrounding Ethereum's short-term prospects, but also underscores the platform's long-term potential over the next decade.
