Аналитики Citi предсказывают возможное падение Ethereum до $4300 к концу года, но не исключают и более серьезный спад Translation: Citi Analysts Predict Ethereum Could Drop to $4300 by Year-End, but a More Severe Decline Is Also Possible

By the end of the year, Ethereum is projected to drop to $4,300, but if adverse circumstances arise, it could decline even further. This statement comes from analysts at Citi, as reported by CoinDesk.

A significant factor influencing the price of the second-largest cryptocurrency by market cap is the monetary policy of the United States. Experts have identified two primary objectives:

According to the bank’s analysts, network activity remains a crucial component of Ethereum’s value; however, much of the increase in on-chain metrics has been observed at the second layer, where the «cross-chain» transfer of value to the base blockchain is somewhat unclear.

Currently, only 30% of Ethereum’s valuation is attributed to Layer 2 activity, indicating an inflated price, likely due to a substantial influx of funds into ETFs and the excitement surrounding tokenization and stablecoins.

Researchers anticipate a slowdown in the growth of Ethereum-based exchange-traded funds (ETFs) since the cryptocurrency has a smaller market capitalization compared to Bitcoin and is less recognized among new investors.

As per SoSoValue, ETH-ETFs attracted $637 million over the past trading week.

Other macroeconomic factors are expected to provide only moderate support. Given that stocks are already close to the target S&P 500 value of 6,600 points, Citi does not foresee significant growth in risky assets.

At the time of writing, Ethereum is trading around $4,500, having gained 4.5% over the past week.

Notably, on September 15, Ethereum celebrated three years since the activation of The Merge update. Since the hard fork, the price of the cryptocurrency has increased by more than 176%.