The American investment bank Citigroup has released a forecast regarding the price of Ethereum (ETH), the second-largest cryptocurrency in the world, expecting its price to reach $4300 by the end of the current year.
This is reported by Finway
Key factors influencing Ethereum’s dynamics
According to Citigroup’s analytical report, the main drivers of Ethereum’s price growth will be increased investor interest and the activation of this platform’s use in the stablecoin and asset tokenization sectors. Bank experts note that despite the positive forecast, the expected ETH price remains below the historical high of $4955, which was recorded last month.
“Current quotes exceed the volumes of transactional activity – likely due to high demand from buyers and excitement surrounding new applications of the technology,” the institution stated.
Possible development scenarios and ETF prospects
Citigroup analysts also emphasize that the recent rise in Ethereum’s value may have been primarily driven by emotional factors rather than real economic indicators. The bank believes that investments in Ethereum-based exchange-traded funds (ETFs) are unlikely to reach the same scale as investments in Bitcoin ETFs.
In its report, Citigroup presents alternative development scenarios:
- Optimistic scenario: ETH could rise to $6400 in the event of significant expansion of the Ethereum-based application ecosystem.
- Pessimistic scenario: a possible decline to $2200 in the event of increased economic instability or a downturn in stock market activity.
For comparison, Standard Chartered Bank raised its forecast for Ethereum to $7500 last month, citing expectations of increased corporate investments and further development of the stablecoin sector.