Citigroup: Ethereum price is expected to fall to $4,300 by year-end

According to ChainCatcher, according to CoinDesk, Wall Street giant Citigroup has released a new Ethereum price forecast, which is expected to reach $4,300 by the end of the year, down from the current price. However, this is just a basic prediction. The bank's comprehensive assessment covers a wide range of areas, with an optimistic forecast of Ethereum price of $6,400 and a pessimistic forecast of $2,200. Citibank analysts say network activity remains a key driver of Ethereum’s value, but most of the recent growth has occurred on the second-tier network, and its “value transfer” of Ethereum’s underlying network is still unclear. Citi assumes that only 30% of Layer2 network activity contributes to Ethereum valuation, meaning current prices are higher than their activity-based model forecasts, which may be due to strong capital inflows and market enthusiasm brought by tokenization and stablecoins. Citi expects that its capital inflow will remain limited given Ethereum’s small market capitalization and low popularity among new investors. Macroeconomic factors are considered to provide only limited support. As the stock market is approaching the bank's 6600-point target set by the S&P 500, analysts do not expect a significant increase in risk assets.