Citi: Ethereum price expected to fall to $4,300 by the end of the year

ChainCatcher reports that, according to CoinDesk, Wall Street giant Citigroup has released a new Ethereum price forecast, expecting the price to reach $4,300 by the end of the year, representing a decline from the current price. However, this is only the baseline forecast. The bank’s comprehensive assessment covers a wide range, with an optimistic scenario predicting Ethereum reaching $6,400, and a pessimistic scenario predicting $2,200.

Citigroup analysts stated that network activity remains a key driver of Ethereum’s value, but most recent growth has occurred on Layer 2 networks, and its “value transfer” to the Ethereum underlying network is not yet clear. Citigroup assumes that only 30% of Layer 2 network activity contributes to Ethereum’s valuation, meaning the current price is above its activity-based model prediction, possibly due to strong capital inflows and market enthusiasm driven by tokenization and stablecoins.

Citigroup expects that, given Ethereum’s relatively small market cap and low recognition among new investors, capital inflows will remain limited. Macro factors are believed to provide only limited support. Since the stock market has already approached the bank’s target of 6,600 points for the S&P 500 index, analysts do not expect risk assets to see significant gains.