Citigroup Issues Year-End Forecast For Ethereum: Here Is The Figure

Here’s why Citigroup predicts that Ethereum could close the year at $4,300, with scenarios ranging from $2,200 to $6,400.

Citigroup has just released a new Ethereum price forecast that places the cryptocurrency at $4,300 by the end of this year. 

This prediction is lower than Ethereum’s current level of about $4,500, which means that the US-listed banking giant is moving cautiously with Ethereum, and investors should consider doing the same.

Ethereum Price Outlook Hinges on Network Activity

Notably, the report does not stop at one prediction. Citigroup also shared a bullish scenario of $6,400 and a bearish scenario of $2,200. 

Citigroup forecasts ETH to fall to $4,300 by year-end (vs. current $4,515), with a bull case of $6,400 and bear case of $2,200. Analysts say most recent growth comes from Layer-2s, with only 30% passing through to Ethereum’s base Layer, leaving prices above model estimates.…

— Wu Blockchain (@WuBlockchain) September 16, 2025

Citigroup noted that network activity is the strongest driver of Ethereum’s value. Each transaction, DeFi project, and blockchain application increases demand for ETH. This means that the more people use ETH, the more valuable it becomes.

However, much of the recent activity has shifted to layer-2 solutions like rollups, sidechains and other scaling technologies. 

These networks handle transactions off-chain and later settle them on Ethereum’s base layer, and while this improves efficiency, Citigroup estimates that only 30% of this activity contributes meaningfully to Ethereum’s value.

ETF Inflows Add Complexity

The rise of ETH ETFs is another factor affecting price. Citigroup noted that even though ETF inflows are smaller compared to Bitcoin, their per-dollar price effect is stronger. 

Still, the bank expects overall inflows into Ethereum ETFs to remain limited due to Ethereum’s smaller market capitalisation and lower recognition among first-time crypto investors.

Institutional Activity and Tokenisation Projects

Institutional inflows and other factors are all helping bridge the gap between Ethereum’s current market price. 

Tokenisation projects that use Ethereum’s blockchain for representing real-world assets are gaining traction. Meanwhile, stablecoins like USDC and USDT continue to rely heavily on Ethereum for settlement, which keeps demand alive.

Corporate treasuries also play a role. 

Strategic Ethereum reserves have reached nearly 5 million ETH, and are worth more than $22 billion. Standard Chartered has pointed out that ETH benefits more from corporate treasury adoption than Bitcoin or Solana. 

This indicates a possible upside beyond Citigroup’s base case.

Market Conditions Offer Little Support

Citigroup analysts see limited help from the macro environment as a whole. As of writing, U.S. equities are already near the bank’s target of 6,600. 

Moreover, on the S&P 500, there is little room left for risk assets like cryptocurrencies to rise on the back of general market trends.

Instead, ETH’s future depends more on blockchain-specific dynamics like network activity, capital flows and new applications. This makes its outlook more volatile compared to traditional assets.

Comparing Citigroup to Other Ethereum Predictions

While Citigroup is cautious, not everyone agrees. Tom Lee of Fundstrat expects ETH could surge to $12,000. He believes that the strong institutional demand and the integration of AI with crypto can do much for prices.

Tom Lee on Bitcoin and Ethereum in Q4 2025:

“I think they could make a monster move in the next 3 months, like huge.” pic.twitter.com/mosXYBlUMC

— Altcoin Daily (@AltcoinDaily) September 16, 2025

Standard Chartered is also optimistic and pointed out Ethereum’s advantage in corporate treasury adoption.

This divide between predictions shows just how uncertain Ethereum’s future is, and market participants must prepare for both sharp rallies and steep corrections.