Citigroup's Bold Ether Forecast: A Tale of Demand and Sentiment
Citigroup targets ether prices at $4,300 by year-end. The forecast considers high investor demand, new applications, and an increasing preference for ether's staking system. Despite potential macroeconomic risks, ether remains popular among companies for staking and tokenization use cases.
Citigroup has projected a year-end price target of $4,300 for ether, underscoring a surge in investor interest and expanding ethereum-based applications like stablecoins and tokenization. Despite the optimistic outlook, the target remains lower than ether's peak price of $4,955.14, recorded last month.
According to Citi, recent price momentum appears to be influenced more by market sentiment rather than solid fundamentals. Their report, dated Monday, suggests that prevailing prices exceed current activity estimates, possibly driven by buying pressure and enthusiasm over new use cases.
Ether is gaining traction as a preferred asset for enterprises seeking active returns, offering staking opportunities that bitcoin lacks. Nevertheless, Citi anticipates ETF inflows into ether will be smaller compared to bitcoin's, signaling it as a proxy for demand. Standard Chartered recently revised its ether target upwards to $7,500, highlighting enhanced industry engagement and substantial corporate holdings.
(With inputs from agencies.)
Google News