According to CoinDesk, Wall Street giant Citigroup has released a new price forecast for Ethereum, which is expected to reach $4,300 by the end of the year, down from the current price. However, this is only a basic forecast scenario. The bank's comprehensive assessment covers a wide range, with the price of Ethereum reaching $6,400 in an optimistic scenario and $2,200 in a pessimistic scenario. Citibank analysts said that network activity remains a key driver of Ethereum's value, but most of the recent growth has occurred on the second-layer network, and its "value transfer" to the underlying network of Ethereum is not yet clear.
Citi assumes that only 30% of Layer2 network activity contributes to Ethereum's valuation, meaning the current price is higher than its activity-based model predictions, likely due to strong inflows and market enthusiasm from tokenization and stablecoins. Citi expects Ethereum's inflows to remain limited given its small market cap and low profile among new investors. Macro factors are thought to provide only limited support. With the stock market already close to the bank's target of 6,600 for the S & P 500, analysts do not expect a significant rally in risk assets.
Citigroup expects the price of Ethereum to fall to $4,300 by the end of the year
2025-09-16 01:04:28
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