Wall Street’s Citigroup Sees Ether Sliding to $4,300 Before 2026

Citigroup Projects Ether Could Fall to $4,300 by Year-End Amid Layer-2 Dynamics

Wall Street giant Citigroup (C) has updated its ether (ETH) outlook, forecasting a year-end price of $4,300, down from the current $4,515.

This represents the bank’s base-case scenario. Its forecast range is broad, with a bull case of $6,400 and a bear case dropping as low as $2,200.

According to Citi analysts, network activity remains the primary driver of ether’s value. Yet much of the recent growth has occurred on layer-2 networks, where the extent of value “pass-through” to Ethereum’s base layer is uncertain. Citi assumes only 30% of layer-2 activity contributes to ETH’s valuation, suggesting that current market prices are elevated—likely driven by inflows and heightened interest in tokenization and stablecoins.

For context, layer-1 networks refer to Ethereum’s main blockchain infrastructure, while layer-2 solutions are off-chain systems built atop the base layer to improve scalability and efficiency.

Exchange-traded fund (ETF) flows also impact ether pricing, though to a lesser degree than bitcoin (BTC). Citi notes that ETFs tend to have a higher price impact per dollar invested, but their overall influence on ETH is limited due to its smaller market capitalization and lower visibility with new investors.

Macro conditions are expected to offer only modest support. With equities nearing Citi’s S&P 500 target of 6,600, analysts do not anticipate significant upside from risk assets to lift ether prices.

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