Breaking🚨

Ethereum Faces Risk of Dropping to $4,300 by Year-End” ⚠️📉

Citigroup cautioned that Ethereum (ETH) may drop to $4,300 by the end of 2025—down from about $4,469 currently. Overvaluation and slow growth of Ethereum's main network are cited as specific concerns. Investors' exuberance and excessive speculative trading may be pushing prices above that fundamental value, which is concerning for a cautious investor. 💰⚡

A big reason for this estimate is the emergence of Layer-2 solutions like Arbitrum and Optimism. While these platforms facilitate transaction speed and scalability, only about 30% of the activity on Layer-2 protocols comes back to Ethereum's base layer. Thus, the activities on the network have decreased impact on ETH's price and created an imbalance between the value of the token and the actual underlying use.

Adoption of Layer-2 is positive for the ecosystem overall, but the undermined evaluation of ETH in the short term remained a clear liability. 🔗📊

Additionally, Citigroup stated that ETF inflow and macroeconomic uncertainty may not yield the same level of impact it has for Bitcoin. Concerns with regulatory matters may weaken investors' participation in Ethereum ETF, which adds more pressure. Some institutions are still bullish; however, this warning calls for attention to the fundamentals of ETH market behavior. 🚨🌐
#ETH 资金量依然庞大，