Citigroup Predicts Ether Could Slip to $4,300 by Year-End Amid Layer-2 Growth
Wall Street giant Citigroup (C) has updated its ether (ETH) price forecasts, projecting a year-end level of $4,300, down from the current $4,515.
This reflects the bank’s base-case scenario. Analysts also outline a wide range of potential outcomes: a bull case targeting $6,400 and a bear case as low as $2,200.
Citi’s team highlighted that network activity remains the core driver of ether’s valuation. Yet, much of the recent growth has been concentrated on layer-2 networks, where the “pass-through” value to Ethereum’s base layer is uncertain. The bank assumes only 30% of layer-2 activity contributes to ETH’s price, indicating that current market levels may be elevated due to strong inflows and enthusiasm surrounding tokenization and stablecoins.
For context, layer-1 networks refer to Ethereum’s base blockchain infrastructure, while layer-2 solutions are off-chain systems built atop the base layer to enhance scalability and efficiency.
Exchange-traded fund (ETF) flows also influence ether, although to a smaller degree than bitcoin (BTC). Citi notes that while ETFs can have a larger price impact per dollar, their effect is expected to remain modest because of ether’s smaller market capitalization and lower visibility among new investors.
Macro conditions are projected to provide only limited support. With equities near Citi’s S&P 500 target of 6,600, analysts do not expect a significant boost from broader risk assets to lift ether prices.
