Ethereum (ETH) has staged a sharp comeback after a sudden market crash triggered by geopolitical tensions. On June 23, a wave of panic hit the crypto market when Iran launched attacks on U.S. military bases in Qatar, sending Ethereum’s price plummeting to $2,100 in under an hour. But a surprising ceasefire announcement from former U.S. President Donald Trump later that night turned the tables fast, ETH soared over 15% to reach above $2,440.
This article explores what caused the sudden spike, what analysts are predicting, and whether ETH has really found its local bottom or if this is just a short-lived bounce.
Ceasefire News Ignites Rapid Market Recovery
Crypto markets were rattled when Iranian forces reportedly struck American bases in Qatar, leading to a fast sell-off. Ethereum wasn’t spared and saw a steep drop to $2,100, a level not seen in recent weeks.
Source: TradingView
However, things took a dramatic turn when Donald Trump posted on Truth Social about a ceasefire deal being reached between Iran and Israel. Though the announcement hasn’t been officially confirmed, it was enough to lift market sentiment. Ethereum quickly rebounded, jumping from $2,100 to $2,440, an impressive 15% recovery from the bottom. Bitcoin also rallied past $106,000, while altcoins like Solana and XRP joined the rebound.
Key Technical Levels Flipped
The bounce wasn’t just emotional, Ethereum managed to break key resistance levels as trading volume surged. ETH cleared the $2,400 mark and flipped a previous support level at $2,275. Analysts have pointed to a possible bull flag forming on higher time frames, which typically signals further upward momentum if the price can stay above $2,500.
Currently, Ethereum is trading near $2,410 with a 24-hour gain of around 7%, supported by a massive trading volume of over $25.5 billion. These technical moves have prompted traders to consider whether a new local bottom is in, or if markets could retrace again if the ceasefire talks fall through.
Market Sentiment: Cautious Optimism
On social media platforms like X (formerly Twitter), investor sentiment seems hopeful. Many users are celebrating ETH’s bounce past $2,400 and the broader altcoin recovery. Others are urging caution, noting that the ceasefire hasn’t been officially verified by global authorities.
Source: TradingView
Still, Trump’s pro-crypto attitude is being seen as a potential long-term positive, especially if he continues to support blockchain innovation and digital assets in the run-up to the U.S. elections.
Risks Remain: Uncertainty on Global Front
Despite the relief rally, Ethereum’s future movement is still closely tied to the global political scene. If the ceasefire doesn’t hold markets could face another downturn. Also, with ETH still below the key resistance at $2,500, some analysts believe the rally could lose steam if no further bullish catalysts appear.
Investors are being advised to monitor the situation closely, especially as ETH attempts to hold above its new support levels. Confirmation of the ceasefire or a continuation of positive crypto-friendly policies from major political figures could fuel further gains.
Ethereum’s 15% price spike shows how quickly sentiment can shift in the crypto space, especially when global politics are involved. While the recovery is promising and has reignited optimism, the sustainability of this rally will depend on real-world events, including confirmation of the ceasefire and broader market momentum.
