Ethereum is back in the spotlight after reaching a new all-time high. However, volatility and expert predictions raise concerns for investors.
Reaching the Record and Subsequent Drop
In recent weeks, Ethereum's price reached an all-time high of over $4,900 after a prolonged period of weakness. However, this record was short-lived, and ETH fell to $4,200 due to a general market correction. Shortly after, Ethereum recovered to around $4,500.
Citigroup's Predictions for Ethereum's Future
Citigroup predicted that Ethereum's price could drop to $4,300 by the end of this year, despite the current price being $4,515. The bank's analysts noted that network activity remains the primary factor driving Ethereum's value, but their estimates suggest that only 30% of users have migrated to Ethereum's base layer.
Network Activity and Its Impact
The recent growth of layer-2 networks has increased activity in the Ethereum ecosystem. However, uncertainty remains regarding the positive impact this growth will have on Ethereum's layer-1. Analysts believe that the current price of ETH reflects capital inflows and expectations surrounding tokenization and stablecoins.
In conclusion, despite Ethereum's recent rise and future expectations, analysts' opinions remain varied, raising questions about the token's fair value.
