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

ChainCatcher news, according to CoinDesk, the Wall Street giant Citigroup has released a new Ethereum price forecast, expecting its price to reach $4,300 by the end of the year, which is lower than the current price. However, this is only a baseline scenario. The bank’s comprehensive assessment covers a wide range: in the optimistic scenario, Ethereum’s price would reach $6,400, while in the pessimistic scenario it would be $2,200.

Citigroup analysts said that network activity remains a key driver of Ethereum’s value, but most of the recent growth has occurred on Layer2 networks, and its “value transfer” to Ethereum’s underlying network is still unclear. Citigroup assumes that only 30% of Layer2 network activity contributes to Ethereum’s valuation, which means the current price is higher than its activity-based model predicts—possibly due to strong capital inflows and market enthusiasm driven by tokenization and stablecoins.

Citigroup expects that, given Ethereum’s smaller market capitalization and lower recognition among new investors, capital inflows will remain limited. Macroeconomic factors are considered to provide only limited support. With the stock market having approached the bank’s target of 6,600 points for the S&P 500 index, analysts expect that risk assets will not see a significant rise.