Citigroup's Ethereum Forecast: Navigating Macro Challenges

Citigroup Adjusts Ethereum Forecast with Bearish Scenario

Key Points:

  • Citigroup’s ETH forecast doubts potential macroeconomic impacts.
  • Risk scenarios include threat to network use and capital flows.
  • Bullish case projects ETH could climb to $6,400 by year-end.

Citigroup has issued a revised forecast for Ethereum, contemplating a potential decline to $2,200 by the year’s end due to macroeconomic challenges. This projection emerged from a report targeting institutional clients, focusing on network and liquidity risks.

Citigroup’s Forecast Highlights


Citigroup’s recent Ethereum price forecast highlights the asset’s volatility. In a worst-case scenario, ETH may crash to $2,200. Concerns include network usage and macroeconomic headwinds cited as critical factors in this potential decline.

Citigroup Research Team, Citigroup Inc., – “We present a base case year-end price target of $4,300 for Ethereum, with a bull-case scenario of $6,400 and a bear-case scenario of $2,200.” Read more

The Citi Crypto Research Team remains unidentified but plays a crucial role in crafting the forecast. The forecast presents bulls and bears, setting $4,300 as the base target. The bear scenario envisions network strain that could trigger a $2,200 slump.

Layer-2 scaling shifts pose challenges, with only 30% of Layer-2 activity benefiting Ethereum’s mainnet. The heightened Layer-2 presence could dilute Ethereum’s intrinsic value. Market responses remain mixed as stakeholders evaluate ETF inflow impacts.

The bear case contributes to a concerning narrative for DeFi and Layer-1 networks, revealing complex trends across these sectors. While Citigroup’s $6,400 bull scenario suggests USD optimism, Ethereum faces significant network usage diffusions to combat.

Citigroup’s projection symbolizes the shifting crypto landscape as Ethereum’s price remains susceptible to technical and economic influences. The report underscores the potential for industry outlook transformation rooted in evolving global conditions and intrinsic network dynamics.

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