Citigroup has released a new forecast predicting Ethereum's price will decline to $4,300 by the end of the year. This projection is part of a broader analysis that includes an optimistic scenario of $6,400 and a pessimistic one of $2,200. The bank highlights that while network activity is crucial for Ethereum's valuation, much of the recent growth has been on second-layer networks, with only 30% of this activity expected to impact Ethereum's value directly. Citi analysts note that the current Ethereum price exceeds their activity-based model predictions, likely due to strong capital inflows and market enthusiasm driven by tokenization and stablecoins. However, they caution that Ethereum's relatively small market cap and limited popularity among new investors may restrict further capital inflows. Additionally, macroeconomic factors are expected to offer limited support, with the S&P 500 nearing Citi's target of 6,600 points, suggesting limited upside for risk assets.