Wall Street Bank Citigroup Sees Ether Falling to $4,300 by Year-End

Wall Street giant Citigroup (C) has launched new ether (ETH) forecasts, calling for $4,300 by year-end, which would be a decline from the current $4,515. That's the base case ￰0￱ bank's full assessment is wide enough to drive an army regiment through, with the bull case being $6,400 and the bear case $2,200. The bank analysts said network activity remains the key driver of ether’s value, but much of the recent growth has been on layer-2s, where value “pass-through” to Ethereum’s base layer is ￰1￱ assumes just 30% of layer-2 activity contributes to ether’s valuation, putting current prices above its activity-based model, likely due to strong inflows and excitement around tokenization and stablecoins.

A layer 1 network is the base layer, or the underlying infrastructure of a ￰2￱ 2 refers to a set of off-chain systems or separate blockchains built on top of layer 1s. Exchange-traded fund (ETF) flows, though smaller than bitcoin’s (BTC), have a bigger price impact per dollar, but Citi expects them to remain limited given ether's smaller market cap and lower visibility with new ￰3￱ factors are seen adding only modest ￰4￱ equities already near the bank's S&P 500 6,600 target, the analysts do not expect major upside from risk ￰5￱ more: Ether Bigger Beneficiary of Digital Asset Treasuries Than Bitcoin or Solana: StanChart