Ethereum (CRYPTO: ETH) has dropped about 10% over the past month, sparking doubts about the sustainability of its rally as some traders short the altcoin.

What Happened: Crypto trader Taiki Maeda revealed he has opened a $1 million short position on Ethereum at $4,154, arguing that the long-anticipated Q4 altcoin rally “may never come,” adding he sees crypto already in a bear market.

He says the Oct. 10 liquidation event marked the start of it as most traders remain overexposed based on outdated 2017–2021 cycle patterns.

Maeda described current conditions as “trickle-down dumpanomics,” where collapsing altcoin prices threaten Ethereum’s $500 billion valuation amid weak on-chain activity.

He also dismissed bullish narratives around stablecoins and tokenization, saying they generate minimal fee revenue for Ethereum while benefiting private companies like Robinhood’s Arbitrum integration instead.

Also Read: Bitcoin, Ethereum Slide Another 3%: Is US Demand Disappearing?

Why It Matters: While Maeda admits his stance is “very opinionated,” Maeda says he’s “a bull at heart” focused on risk management, preferring to earn positive funding on shorts rather than risk heavy long exposure.

He remains bullish on Bitcoin (CRYPTO: BTC), maintaining a $150,000 year-end target and expecting BTC to decouple from altcoin weakness. “If everyone’s planning to sell Ethereum at $6,000,” he quipped, “who’s going to buy it up there?”

Maeda also warned that yield farming returns could shrink as retail demand fades, potentially pushing stablecoin yields down from 25%, while institutional treasury selling, such as Sequins moving BTC to Coinbase, adds further downside pressure to the market.

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