Citigroup has set a year-end price target of $4,300 for ether, the world’s second-largest cryptocurrency. This target is based on rising investor demand and growing interest in ethereum-based use cases such as stablecoins and tokenization.
The Wall Street brokerage’s target is still below ether’s record high of $4,955.14, which it reached last month. Citi noted that ether’s recent price strength may be driven more by sentiment than fundamental value. In a note released on Monday, Citi stated, “Current prices are above activity estimates, potentially driven by recent buying pressure and excitement over use-cases.”
Ether has become a preferred token for companies seeking more active returns. Unlike bitcoin, which relies solely on price appreciation, ether can be “staked,” allowing holders to earn yields by supporting the ethereum network. However, Citi expects the flow of ETF funds into ether to be smaller compared to bitcoin.
This view differs from Standard Chartered, which last month raised its year-end target for ether to $7,500 from $4,000. StanChart cited stronger industry engagement and rising corporate holdings as reasons for its bullish outlook, suggesting the stablecoin sector could grow significantly and drive up demand for the ethereum network.
Citi also provided a bull-case scenario of $6,400, which could be reached with rising activity and wider adoption of ethereum-based applications. In a bear-case scenario, the price could fall to $2,200 in the event of macroeconomic weakness and a decline in equity markets.
