TLDR
- Citigroup predicts Ethereum could fall to $4,300 by the end of 2025.
- Ethereum’s price drop is linked to weak base layer activity and Layer-2 growth.
- Corporate Ethereum treasuries, like BitMine, continue to influence price trends.
- Citigroup forecasts a wide price range for Ethereum, from $2,200 to $6,400.
Citigroup has issued a bearish forecast for Ethereum (ETH), predicting that its price could fall to $4,300 by the end of 2025. The global financial institution’s outlook comes amid recent fluctuations in Ethereum’s market value. This analysis signals a cautious sentiment in the crypto space, with Citigroup highlighting several factors that could drive Ethereum lower.
Factors Behind Citigroup’s Bearish Stance
Citigroup’s analysis points to multiple factors that may contribute to Ethereum’s price decline. A key issue highlighted by the bank is the drop in network activity, particularly related to Ethereum’s base layer. The analysts note that a significant portion of Ethereum’s growth is now driven by Layer-2 networks, with only 30% of transactions flowing through the base layer. According to Citigroup, this imbalance creates an overvaluation of Ethereum’s price. The strong market interest in stablecoins and tokenization has led to inflows that push prices higher, despite a limited effect on Ethereum’s core network.
Moreover, the bank underscores Ethereum’s relatively smaller market capitalization and its low recognition among new investors. These elements, combined with a weaker performance in September historically, support the bank’s cautious outlook. The report also mentions that selling pressure in the broader crypto market may further hinder Ethereum’s short-term growth, leading to a possible dip to $4,300.
Citigroup’s Bullish and Bearish Price Targets for ETH
Citigroup has provided a wide range of possible price outcomes for Ethereum by the end of the year. In a bearish scenario, the firm predicts that Ethereum could drop as low as $2,200, representing a significant loss from its current levels. On the other hand, the bank also offers a more optimistic scenario, suggesting that Ethereum could rally to $6,400 if the market experiences a surge in investor demand or favorable market conditions.
The firm’s forecast takes into account various factors, including the growing use of Ethereum’s Layer-2 solutions and the potential impact of institutional adoption. While the low-end prediction seems extreme, Citigroup acknowledges that Ethereum’s future price will depend largely on broader market trends and investor sentiment.
Ethereum’s Role in Corporate Treasuries and Institutional Demand
Institutional demand is playing a larger role in Ethereum’s market activity. Companies are increasingly acquiring large amounts of Ethereum for their corporate treasuries, which has influenced price trends in recent months. Notably, BitMine Immersion Technologies, one of the largest corporate holders of Ethereum, recently purchased $200 million worth of the cryptocurrency. This acquisition brings BitMine’s total holdings to over 2.1 million ETH, valued at approximately $9 billion.
Citigroup’s report highlights that Ethereum’s price could be supported by continued corporate investment. However, the firm notes that such purchases are not guaranteed to drive sustainable price increases. Ethereum’s relatively low recognition among new investors could limit its long-term growth potential, especially as institutional adoption is still in the early stages.
Ethereum Price Outlook Amid Market Conditions
Ethereum’s recent price movements have been relatively flat, with the cryptocurrency trading around $4,500. The market has experienced a slight decline over the past 24 hours, reflecting weak interest from traders. Citigroup’s bearish outlook is aligned with the broader trend of cautious market sentiment, particularly in September, a historically challenging month for Ethereum.
Despite this, some analysts remain optimistic about Ethereum’s potential. Technical charts and on-chain data suggest that Ethereum could break through resistance levels if it manages to hold above $4,500. However, failure to maintain this level could trigger further declines, potentially pushing Ethereum’s price towards the $4,000–$4,100 range, according to some market observers.
As Ethereum’s price remains volatile, investors and traders will be closely monitoring both market trends and the broader economic environment to gauge its potential direction in the coming months.
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