In recent months, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has entered a consolidation phase, trading within the range of $4,200 to $4,700. This price stagnation follows an all-time high (ATH) achieved in August and mirrors a broader trend across the cryptocurrency market where Bitcoin (BTC) and other digital assets struggle to reclaim past momentum.
Analysts from Citigroup have offered a tempered outlook for Ethereum, estimating a year-end price target of $4,300. Their analysis indicates that the current demand for ETH is significantly driven by a growing interest in Ethereum-based applications, particularly in areas like stablecoins and tokenization. Nevertheless, Citi warned that the current pricing may not fully reflect the underlying fundamentals, suggesting it might be skewed by recent bullish market sentiment and heightened purchasing activity.
In a note, Citigroup stated, “Current prices are above activity estimates, potentially driven by recent buying pressure and excitement over use-cases.” While favorable developments in legislation, such as the passing of the GENIUS Act which establishes a new framework for stablecoins, have bolstered Ethereum’s attractiveness, Citi expects that inflows of exchange-traded funds (ETFs) into ETH will lag behind Bitcoin’s momentum.
In contrast, Standard Chartered has adopted a more optimistic stance, substantially raising its end-of-year target for Ethereum from $4,000 to $7,500, citing increased engagement from corporations and heightened investment interest. The bank predicts that the stablecoin sector could expand eightfold by 2028, which would likely enhance ETH network fees and elevate demand.
Citi also presented a potential bullish scenario, envisioning a price rise to $6,400 if the adoption of Ethereum-based applications continues to grow, representing a potential gain of around 42%. Conversely, in a bearish case triggered by macroeconomic downturns or slumps in the equity market, the price could drop to as low as $2,200, equating to a concerning 50% decrease from current rates.
Adding to the optimistic perspective, a report from Sygnum, a digital asset bank, underscores the positive implications of Ethereum’s upgrades and escalating institutional interest. With a decrease in liquid ETH reserves on exchanges and increasing demand, a supply squeeze could occur, potentially propelling the asset back towards its all-time highs.
At present, Ethereum is trading at approximately $4,480, reflecting a weekly increase of 5%, although it remains nearly 10% below its peak price levels. As the market continues to evolve, all eyes will be on Ethereum’s performance as it navigates through these fluctuating conditions.
