Citigroup Expects Ether at $4,300 by End of 2025

Citigroup, a major Wall Street bank, forecasted on September 16, 2025, that the price of ether (ETH) would fall to $4,300 from its current price of $4,515 by the end of this year. 

The bank’s prediction has a wide range, with a bullish scenario of Ether reaching $6,400. It also stated that in the bearish scenario, the Ether price could drop to $2,200, highlighting uncertainty about its future price. 

Citigroup’s analysts highlighted that network activity remains the primary driver of ether’s value. However, much of the recent growth has occurred on layer-2 solutions, which are built on top of Ethereum’s main blockchain. It’s unclear how much of this layer-2 activity actually increases the value of Ethereum’s base layer, where ether operates. 

Layer-1 is a core blockchain network that handles all on-chain transactions and serves as a definitive public ledger. Layer-2, on the other hand, is any off-chain network, system, or technology built on top of a primary blockchain, enhancing its functionality.

The bank estimates that only 30% of activity on layer-2 systems (built on Ethereum’s main blockchain) boosts ether’s value, suggesting its current price of $4,515 may be too high compared to actual network use. The higher price is likely due to strong investments and excitement around tokenization and stablecoins.

Limited ETF flows, macro factors may restrain Ether

The report also says that investments in ether through exchange-traded funds (ETFs) are smaller than those in bitcoin, but they affect ether’s price more because ether has a smaller market and fewer new investors. Ether’s price depends on complex factors, especially how Ethereum’s main blockchain works with layer-2 systems built on top of it to improve speed and capacity.

However, Citigroup expects these ETF investments to stay limited, which could prevent big price increases. Citigroup also noted that stock markets are close to their S&P 500 target of 6,600, meaning there’s little room for growth in risky assets like cryptocurrencies. Economic conditions, like stock market trends, won’t provide much support for boosting crypto prices.

Meanwhile, on July 25, 2025, a Citi analyst predicted that Bitcoin could surge to $199K by the end of this year. Further, on August 15, 2025, Citigroup announced plans to expand into cryptocurrencies. The bank planned to enter the stablecoin and cryptocurrency custody space. 

Also Read: Stablecoins to Reshape Post-Trade Markets Within 5 Years: Citi Report