Ethereum (ETH) has been experiencing a period of consolidation after reaching an all-time high last August. Currently trading between $4,200 and $4,700, ETH, the second-largest cryptocurrency in the market, is reflecting a broader stagnation in the crypto space. This trend is not unique to Ethereum, as even Bitcoin (BTC) has been struggling to regain momentum after both BTC and ETH reached record highs above $124,000 and $4,900 respectively.
Citigroup, one of the largest investment banks in the United States, has tempered expectations for Ethereum’s price, forecasting a year-end target of $4,300 for the altcoin. The bank attributes the current demand for Ethereum to the growing interest in Ethereum-based applications like stablecoins and tokenization. However, Citigroup warns that the recent price strength may be more driven by market sentiment rather than underlying fundamentals.
In a recent report, Citigroup mentioned that current prices are above activity estimates, possibly due to recent buying pressure and excitement surrounding Ethereum’s use cases. Investors are increasingly drawn to Ethereum for more than just price appreciation, with analysts predicting further price growth for the altcoin. Recent regulatory developments, such as the passage of bills like the GENIUS Act, and the surge in interest in tokenization, are contributing to Ethereum’s appeal.
Despite these positive developments, Citigroup anticipates that the inflow of exchange-traded funds (ETFs) into Ethereum will be less robust compared to Bitcoin. On the other hand, Standard Chartered has revised its year-end target for Ethereum significantly upward, from $4,000 to $7,500, reflecting stronger industry engagement and increasing corporate investments.
Looking ahead, Citigroup presented both bearish and bullish scenarios for Ethereum. In a bullish case, the bank projects a potential price of $6,400 if activity and adoption of Ethereum-based applications continue to rise. Conversely, in a bearish scenario, Ethereum’s price could drop to $2,200 in the event of a macroeconomic downturn or equity market decline.
A recent report from Sygnum, a digital asset bank, offered a more positive outlook for Ethereum, highlighting upgrades and increasing institutional interest as factors that could position ETH for growth. As demand intensifies and liquid Ethereum reserves on exchanges decrease, the possibility of a supply squeeze arises, potentially sending the altcoin into a new uptrend to retest all-time high levels.
At the time of writing, Ethereum is trading at $4,480, up 5% on the weekly timeframe but nearly 10% below its all-time high levels. The cryptocurrency market continues to be a dynamic space, influenced by various factors that can impact prices and investor sentiment.