The cryptocurrency market experienced extreme volatility following reports of Iran launching strikes on U.S. military bases in Qatar. The first casualty was a rapid hour-long sell-off that left Ethereum (ETH) at just over $2,100.

Yet, the markets quickly recovered following the announcement made by the U.S. President Donald Trump of the deal between Iran and Israel, published late on June 23 on Truth Social.

ETH Turns Key Resistance Into Strong Support

The news inspired a widespread crypto rally. ETH rose by more than 15 percent off its low of the day and retracked the $2,400 figure. Bitcoin was also reacting well, getting above the $106,000 mark, whereas altcoins, including Solana and XRP, gained significantly.

Ethereum Surges 15% After Trump Announces Ceasefire Deal

As of this writing, Ethereum trades around $2,410, up 7% in the past 24 hours, with a trading volume of $25.56 billion. The asset also reversed, turning $2,275 to support, and broke the resistance of $2,400, with analysts suggesting the formation of a possible bull flag. The next upside may depend on a confirmed move above $2,500.

However, there is some doubt. Market observers say the rally may prove temporary, particularly since the ceasefire is unconfirmed. The traders are keenly watching whether this rally will be a veritable local base or nothing more than a short-term response to the fast-developing news.

Ethereum Surges 15% After Trump Announces Ceasefire Deal

The mood on X (which used to be Twitter) is optimism tempered. Several of its users were jubilant about the resurgence in ETH, whereas others noted the pro-crypto rhetoric of Trump as a long-term optimistic indicator. Nonetheless, there are lingering fears that another wave of geopolitical unrest will cause another market upheaval.

At this moment, the increase in value of Ethereum indicates that investors have regained confidence in it, but its maintenance will rely on the dynamics of the market and the stability of the geopolitical situation.