Citibank has released its latest forecast predicting that Ethereum (ETH) will decline to $4,300 by the end of the year, representing a drop from its current price of $4,515. The bank also provided range projections: in a bullish scenario, ETH could rise to $6,400, while in a bearish scenario, it might fall to $2,200.

Citibank analysts noted that network activity remains the core driver of Ethereum's value. However, most recent growth has originated from Layer 2 networks, with only approximately 30% of this activity flowing through to the mainnet. This dynamic has resulted in the current price trading above levels suggested by activity-based valuation models.