This morning, Iran and the U.S. released a 14-point Memorandum of Understanding, bringing a temporary easing to the Middle East’s geopolitical tensions. Provisions such as a permanent ceasefire, U.S. troop withdrawal, and the reopening of the Strait of Hormuz have eased concerns about oil supply and reduced risk-aversion sentiment, providing emotional support for risk assets.

Based on the current market conditions, BTC and ETH are both in a technical repair phase after bottoming out. This news effectively adds a catalyst to the rebound. In the short term, market sentiment has warmed up, and the market continues to trade in a high-range consolidation pattern, with ETH consistently outperforming BTC.

However, it should be noted that the implementation of the agreement provisions is difficult, and uncertainties still remain going forward. Moreover, current indicators have already entered a high-level overbought range, so there is a risk that rebound momentum may start to fade. If prices fail to break above the prior high, after the favorable sentiment dissipates, there is still a possibility of a technical pullback.