Citigroup Is Bearish on Ethereum, Issues $4,300 Year-End ETH Price Target

Core Viewpoint - The recent decline in Ethereum's price has led to pessimism among various entities, including Citigroup, which projects further price drops by the end of 2025 [1][4]. Price Movement - Ethereum is currently trading at approximately $4,515.24, reflecting a 1.74% decline over the last 24 hours, following a recent high of $4,700 [2]. - Citigroup analysts have identified network activity as a key driver of Ethereum's value [2]. Growth Attribution - Analysts attribute a significant portion of Ethereum's growth to Layer-2 solutions, noting that only 30% of this growth is reflected in Ethereum's base Layer, leading to potential overvaluation [3]. - The excitement surrounding stablecoins and tokenization is also contributing to the current price dynamics [3]. Price Projections - Citigroup forecasts that Ethereum's price could drop to around $2,200, representing a more than 100% decline from current levels, but also acknowledges the potential for a bull run that could push prices up to $6,400 [4]. - The recent price drop from over $4,700 to $4,500 is attributed to selling pressure and profit booking [4]. Technical Analysis - Technical charts and on-chain data suggest historical risks, with $4,800-$4,880 identified as a key resistance zone for Ethereum's next upward movement [5]. - If Ethereum fails to maintain above $4,500, it may retest the $4,000–$4,100 range [5]. Future Outlook - A significant breakout for Ethereum could occur if it closes above $4,880, potentially leading to fresh momentum [6]. - Institutional demand is crucial for Ethereum's recovery, with some firms making substantial investments, such as BitMine Immersion Technologies acquiring $200 million worth of ETH [7].