The price of Ethereum surged nearly 7%, moving closer to the key $2,200 psychological resistance level, as improving geopolitical sentiment lifted crypto markets.
Summary
Ethereum climbed close to 7%, reaching around $2,153.
Market sentiment improved after signals of a potential ceasefire between the U.S. and Iran.
A bullish cup and handle pattern has emerged on the daily chart.
According to market data, Ethereum hit a six-day high of $2,153 on April 1, recovering strongly after recent losses. Earlier in the week, the altcoin had dropped nearly 16%, falling from $2,360 to $1,972 amid rising tensions between the U.S. and Iran.
The sell-off was largely driven by geopolitical uncertainty, including disruptions around the Strait of Hormuz, a crucial global oil route, which sent energy prices soaring and pressured risk assets.
Geopolitical easing boosts sentiment
Ethereum’s rebound came after reports suggested that Iran’s leadership may be open to ending the conflict, provided certain conditions are met. While specifics remain unclear, past demands have included greater control over the Strait of Hormuz, war compensation, continuation of its nuclear energy program, and security guarantees against future attacks.
On the U.S. side, Donald Trump has also hinted at the possibility of a ceasefire, even as regional players like Saudi Arabia and the UAE continue to push for a tougher stance.
Markets reacted quickly to these developments. Oil prices dropped sharply, while equities such as the S&P 500 and crypto assets moved higher, reflecting a shift toward a risk-on environment.
Technical outlook for Ethereum
From a technical perspective, Ethereum is showing signs of strength. The formation of a cup and handle pattern on the daily chart—a widely recognized bullish continuation setup—suggests that the upward trend may be resuming.
Momentum indicators also favor buyers:
The 20-day SMA has crossed above the 50-day SMA
The supertrend indicator has turned green, signaling bullish momentum
Currently, Ethereum is testing resistance near $2,200, a level that has previously triggered selling pressure.
If ETH successfully breaks above this barrier, the next upside targets include:
$2,384 (neckline of the pattern)
$2,450 (aligned with the 100-day SMA)
Market takeaway
Easing geopolitical tensions have provided short-term relief to crypto markets, allowing Ethereum to recover from recent lows. However, traders remain cautious as further developments in global politics and macro conditions could continue to drive volatility.
