Financial analysts at Citigroup have released a forecast suggesting that ethereum, currently the second-largest cryptocurrency based on market capitalization, could decline in value to $4,300 by the close of the year. This projection is lower than its current trading range, which hovers around $4,450, and considerably less than the peak of $4,953 it reached on August 24th, as recorded by CoinMarketCap.
According to their research note published on September 16th, the Citigroup analysts also outlined optimistic and pessimistic scenarios, with potential highs of $6,400 and lows of $2,200, respectively.
“The optimistic view hinges on an increase in network activity, potentially driven by stablecoins or the tokenization of assets. Conversely, the pessimistic outlook, mirroring concerns around bitcoin, is tied to broader economic factors, particularly a decline in equity markets. As the year progresses, uncertainty should decrease, causing the optimistic and pessimistic scenarios to converge towards our baseline forecast,” the analysts explained.
The report also noted that exchange-traded fund (ETF) inflows into ethereum “have demonstrated a greater impact on price compared to bitcoin, although they account for a smaller proportion of weekly return variation.”
However, not everyone in the cryptocurrency sphere shares this cautious perspective. Mark Newton, Managing Director and Global Head of Technical Strategy at Fundstrat Global Advisors, stated that “ETH is on track to reach $5,500 by mid-October.”
This estimate also falls short of Standard Chartered Bank’s more bullish prediction. Last month, the bank increased its target price to $7,500 by the end of 2025 and a substantial $25,000 by the conclusion of 2028.
Geoffrey Kendrick of Standard Chartered Bank suggested in a recent memo that, in the future, ethereum treasuries will likely experience greater investment inflows compared to bitcoin or solana treasuries, potentially leading to higher profitability.
“While the number of companies mimicking MicroStrategy’s bitcoin strategy has increased, the shift towards other digital assets, particularly ETH, has been truly remarkable. Ethereum-denominated assets now represent 3.1% of the total ETH in circulation, while SOL assets account for 0.8%,” Kendrick elaborated.
In related news, SharpLink Gaming, which holds the second-largest corporate ethereum treasury, possessing 838,152 ethereum valued at over $3.7 billion, recently announced the repurchase of 1 million of its shares at an average price of $16.67 each, as part of its $1.5 billion buyback program initiated in August.
To date, the company has bought back 1.9 million shares, explaining in a press release that “The company firmly believes that its common stock is significantly undervalued in the market and that stock repurchases are the most effective method to maximize shareholder value given the current market conditions.”