Investment bank Citigroup has released an updated forecast for Ethereum, the world’s second-largest cryptocurrency by market capitalization.
Analysts expect ETH to reach $4,300 by the end of 2025, citing two main growth drivers:
- Rising institutional demand, and
- Growing interest in Ethereum’s real-world use cases, including stablecoins and asset tokenization, Reuters reports.
Citi warns the market may be overheating
Citigroup cautioned that Ethereum’s recent rally appears more driven by market sentiment than by fundamentals.
“Prices have exceeded levels justified by network activity, likely due to recent buying pressure and excitement around new use cases,” the bank noted.
For context, Ethereum hit an all-time high of $4,955 last month, meaning Citi’s target is slightly below its recent peak.
Alternative scenarios from Citi
- Bullish (optimistic): ETH could climb to $6,400 if on-chain activity accelerates and decentralized applications gain broader adoption.
- Bearish (pessimistic): ETH could drop to $2,200 in the event of a global economic slowdown and equity market decline.
A cautious call amid more aggressive forecasts
Citi’s projection is notably more conservative than those of several other major banks.
For instance, Standard Chartered raised its year-end target to $7,500 last month, citing increasing corporate investment and the long-term potential of the stablecoin market.
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