Citigroup has raised its year-end price target for ether to $4,500, about 3% above its current level of $4,375, with an optimistic 12% upside potential to $5,440 over the next year, driven by strong inflows from ETFs and digital asset treasuries.

The market outlook shows bitcoin's price target at $133,000, roughly 12% higher than its current $118,747, but its prospects have been revised downward because of macroeconomic factors like a stronger dollar and weaker gold prices.

This revision reflects a shift in institutional preferences toward Ethereum-based assets, as Citigroup also lowered its forecast for bitcoin due to external market headwinds.

Investors are now more inclined toward yield-generating assets like ether's staking and decentralized finance capabilities, signaling a move away from bitcoin's traditional 'digital gold' narrative.

This shift indicates a maturing cryptocurrency market where fundamentals such as cash flows and yields are increasingly influencing investor decisions, with ether gaining favor due to its broader utility beyond mere price appreciation.