Citigroup Forecasts Year-End Ether Price at $4,300

Citigroup Projects Ether Could Drop to $4,300 by Year-End, Cites Layer-2 Influence

Wall Street powerhouse Citigroup (C) has released updated ether (ETH) forecasts, setting a year-end target of $4,300—a decline from the current $4,515.

That figure represents the bank’s base case, with a broad forecast range: the bull scenario projects $6,400, while the bear case anticipates a drop to $2,200.

According to Citi analysts, network activity remains the key driver of ether’s value. However, much of the recent growth has taken place on layer-2 networks, where the degree of “pass-through” to Ethereum’s base layer is uncertain. The bank assumes only 30% of layer-2 activity factors into ETH’s valuation, suggesting current prices may be elevated due to strong inflows and excitement surrounding tokenization and stablecoins.

Layer-1 networks are Ethereum’s foundational blockchain infrastructure, while layer-2 solutions are off-chain systems built atop layer 1 to improve scalability and efficiency.

Exchange-traded fund (ETF) flows also impact ETH prices, though less than bitcoin (BTC). Citi notes that while ETFs exert a higher price impact per dollar, their influence on ether is expected to remain limited given the token’s smaller market capitalization and lower visibility to new investors.

Macro factors are expected to provide only modest support. With equities near Citi’s S&P 500 target of 6,600, analysts see limited potential upside from risk assets to drive ether higher.