Switzerland is definitely an amazing place to hike! It's up to what you prefer, but there's a hostel called the Mountain Hostel in Gimmelwald, Switzerland. It is a really small town (I know you said you wanted to be near a city), but there is so much to do. It is about an hour by train+bus+cable car away from Interlaken, but you have access to tons of different hikes. Even though it is a really small town, the hostel attracts tons of awesome people, so you never have a dull time partying with everyone. Mountain Hostel - High in the Alps
Otherwise, you can still do some awesome hikes. The Schilthorn is an amazing one, and gives you a huge sense of accomplishment when you reach the top. I will try to dig up some of the stuff I saved from Europe (unless it's at my parents' house) and see about some other cool hikes.