
Citigroup expects Ethereum may slip to $4,300 despite doubling value earlier this year.
Analysts warn only 30% of Layer-2 growth directly benefits Ethereumโs base network value.
Meanwhile, Citi even outlines $6,400 bullish case and $2,200 bearish case, showing uncertain ETH future.
Ethereum has had a remarkable year, nearly doubling in value, yet Wall Street isnโt convinced the rally can keep running without a pause. Citigroup, one of the worldโs largest financial institutions, now believes ETH may close the year around $4,300, slightly below todayโs ETH price levels
Citiโs view is sparking debate in crypto circles since they rarely make risky predictions.
Why Citi Sees Pressure Ahead For ETH?
According to their bankโs analysts, much of Ethereumโs recent growth has been happening on Layer-2 networks like Arbitrum and Optimism rather than directly on Ethereumโs base layer.
While these scaling solutions boost adoption, Citi estimates that only about 30% of that activity benefits ETHโs core value.
On top of that, regulatory uncertainty and wider macroeconomic challenges are seen as possible headwinds. With U.S. stocks already close to Citiโs own S&P 500 target, analysts expect only modest support from risk assets like crypto in the near term.
Citiโs Ethereum Price Prediction
To be clear, Citi isnโt betting against Ethereum completely. Their forecast comes with a wide range of bullish cases at $6,400 if ETF inflows and regulation work in Ethereumโs favor, and a bearish case at $2,200 if conditions sour.ย
This spread shows just how uncertain the road ahead is for ETH, despite its role as the backbone of DeFi and NFTs.
Interestingly, Citi noted that while Ethereum ETFs donโt attract as much capital as Bitcoin ETFs, every dollar that flows into ETH products tends to have a stronger impact on price.
Ethereum Price Analysis
Supporting the analysis of Citigroup veteran trader Ted, who predicts Ethereum could see a short-term dip before a major rally. According to his analysis, ETHโs price pattern is starting to mirror the explosive 2020โ2021 rally; an initial rally, a sharp correction, a long accumulation phase, and then a strong breakout.ย
ETH has cleared $4,250โ$4,500 resistance, but a small dip is likely. If the pattern holds, ETH could rise toward $8Kโ$10K soon.
For now, Ethereum sits at around $4,500, holding a strong 13% share of the total crypto market.
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