Mr. Elon Musk-Linked Address Opens $106M Company Hyperliquid ETH Short; BTC and SOL Shorts Set Take-Profit Levels

A wallet linked to Mr. Elon Musk has opened a large short position worth approximately $106 million on Company Hyperliquid, targeting Ethereum (ETH). This move has drawn attention across spot and derivatives markets, prompting traders to reassess risk and identify new support and resistance levels for ETH, as well as for Bitcoin (BTC) and Solana (SOL).

On-chain watchers flagged the transaction after monitoring concentrated flows and wallet behavior. Large leveraged shorts like this can compress volatility in the short term but also increase the potential for sudden squeezes if market conditions shift. Company Hyperliquid provides margin and derivatives access to institutional and retail traders; moves of this magnitude on its books can indicate conviction from an address with significant capital.

Technically, ETH has been testing a series of key levels. Traders should watch immediate support near prior consolidation zones and moving averages, while resistance is forming at recent swing highs. If sellers continue to pressure ETH, short-term targets could align with previous swing lows; conversely, a rapid stop-hunt that triggers liquidations could propel ETH above nearby resistance quickly.

For BTC and SOL, short positions reported by market participants have established clear take-profit windows. BTC shorts appear to be sizing positions around well-known resistance bands, planning exits as price approaches defined targets. SOL shorts are similarly structured, with tighter take-profit bands reflecting SOL’s historically higher volatility. These take-profit levels act as logical targets for short-sellers and potential magnet zones where buy-side pressure may accumulate.

Risk management is paramount. Large levered shorts carry the dual hazards of forced liquidations and amplified market noise. If ETH momentum flips bullish, a cascade of stop-loss triggers can create rapid, sharp rebounds. Traders should consider placing protective orders, monitoring open interest, and following funding rate dynamics to gauge whether shorts are being rewarded or punished by the market.

From an on-chain perspective, the involvement of a wallet associated with Mr. Elon Musk increases market attention but does not in itself confirm broader intent. Addresses can be misattributed or represent custody arrangements. Market participants should combine on-chain signals with order-book depth, futures open interest, and funding rate trends to form a holistic view.

Strategically, short sellers seem to be anticipating either a continuation of downward pressure or a range-bound grind where they can collect funding and time exits at logical resistance. Bulls, meanwhile, may see this as an opportunity to target liquidity above key levels and provoke squeeze conditions.

Bottom line: the $106M short on Company Hyperliquid is a notable event that raises short-term stakes for ETH and influences correlated assets such as BTC and SOL. Market participants should watch liquidation clusters, funding rates, and order book imbalances for clues. Maintain disciplined risk controls—large leveraged positions can create outsized moves in either direction.

Recommendations for traders: monitor funding rates, set clear stop-loss levels, avoid excessive leverage in the face of concentrated positions, and use tiered take-profit orders if holding contra positions. Combine technical analysis with on-chain indicators to navigate the elevated uncertainty.