Citigroup Sets $3,028 Target Price...Ethereum (ETH) Enters Consolidation Phase

▲ Ethereum (ETH)

Global investment bank Citigroup (C) has significantly raised its 12-month target price for Ethereum (ETH) to $3,028. However, Ethereum is stuck in a narrow trading range, consolidating below the $2,800 resistance level.

FXStreet reported on October 1 that Citi raised its 12-month target price for Ethereum from the previous $2,240 to $3,028, an increase of approximately 35%, reflecting an improved macroeconomic environment and increased trading activity across the cryptocurrency market. Citi also raised its Bitcoin (BTC) target price from the existing $82,000 to $113,000, expressing optimism for the overall market.

Despite Wall Street's higher expectations, the spot price is experiencing a stagnation phase between the $2,600 support and $2,800 resistance levels. Over the past week, Ethereum repeatedly attempted to settle above $2,800 but failed each time due to profit-taking selling pressure.

High volatility in Exchange Traded Fund (ETF) capital flows has been identified as a factor limiting short-term breakouts. According to data compiled by Farside Investors, US spot Ethereum ETFs recorded large net inflows in the early fourth week of September, including $270 million on September 21 and $162.2 million on September 22. However, on September 30, it turned to a net outflow of $59.6 million, exposing an unstable trend in institutional supply and demand.

On the supply side, however, structural tailwinds are firmly in place. Approximately 35% of the total Ethereum circulating supply is locked in staking, significantly reducing the available liquid supply in the market. Analysis suggests that if institutional demand fully re-emerges in a situation where circulating supply is scarce, price upward momentum could become even stronger.

Experts diagnose that for Ethereum to put Citigroup's target price of $3,028 within sight, it must first break through the $2,800 resistance wall on a closing price basis. Breaking $2,800 would open the psychological test level of $3,000, but if it repeatedly fails to break through, a correction to reconfirm the $2,600 support level is inevitable.

Amid Wall Street's ultra-bullish target price hikes, Ethereum is engaged in a tight tug-of-war with the $2,800 resistance level. Market attention is focused on whether Ethereum can break past $2,800 and settle at the $3,000 mark, driven by the supply shortage effect from approximately 35% of its supply being staked.

[Article Key Summary]

-Citigroup (C) raised its 12-month target price for Ethereum (ETH) by 35%, from $2,240 to $3,028, citing market activation and macro improvements.

-The spot price repeatedly failed to break the $2,800 resistance level, remaining in a trading range between $2,600 and $2,800.

-With 35% of the circulating supply staked, leading to a supply shortage, the ability to break through $2,800 is considered a key watershed for a $3,000 rally.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*