Cryptocurrency markets continued their upward trajectory on Monday, with Bitcoin approaching the $66,000 mark as improving geopolitical sentiment encouraged investors to return to risk assets. Ethereum and XRP also posted gains, trading above $1,700 and $1.18 respectively, following reports of a preliminary peace agreement between the United States and Iran aimed at ending hostilities in the Middle East.
Peace Agreement Lifts Market Sentiment
Investor confidence strengthened after Washington and Tehran announced progress toward a peace deal that could eventually lead to the reopening of the strategically important Strait of Hormuz. Iran’s deputy foreign minister confirmed on state television that a formal agreement is expected to be signed later this week, while senior military officials in Tehran described the development as a significant achievement.
Although full details of the agreement have not yet been disclosed, reports indicate that an existing ceasefire, which began in early April, will be extended to facilitate an additional 60 days of negotiations. Iranian authorities also stated that the US naval blockade would be lifted immediately and that military operations across multiple fronts would cease.
The improving geopolitical outlook has sparked renewed interest in digital assets. Market sentiment, measured by the Crypto Fear & Greed Index, rose to 20 from 18 a day earlier and just 8 a week ago. While the index remains in the Extreme Fear zone, the steady improvement suggests investors are becoming more willing to increase exposure to higher-risk assets.
Analysts believe continued stabilization in global conditions could support a broader crypto recovery, with Bitcoin targeting a move above $70,000, Ethereum aiming for $2,000, and XRP eyeing the $2 threshold.
Bitcoin Faces Key Resistance Levels
Bitcoin was trading around $65,762 at the time of writing, maintaining its recent rebound despite remaining below major technical resistance levels. The cryptocurrency continues to trade under its 50-day, 100-day and 200-day exponential moving averages, which collectively form a significant resistance zone between $70,700 and $78,700.
Technical indicators suggest momentum is gradually improving. The Relative Strength Index (RSI) has recovered to around 42 after previously approaching oversold territory, while the MACD histogram has turned positive, indicating strengthening buying pressure.
A sustained move above the 50-day EMA near $70,703 would be the first major signal of renewed bullish momentum. On the downside, support is seen around $60,237, where the Parabolic SAR indicator currently sits.
Ethereum Attempts to Stabilize
Ethereum traded near $1,720 on Monday, extending its recovery despite remaining below several key technical barriers. The cryptocurrency continues to face resistance from the 20-day Bollinger Band midpoint near $1,790, as well as longer-term moving averages positioned between $1,966 and $2,392.
Momentum indicators show tentative signs of improvement, with the MACD histogram moving into positive territory. However, the RSI remains below neutral levels, suggesting that bullish momentum has yet to fully establish itself.
Resistance levels are clustered around $1,790, $1,966 and $2,111, while support remains near the lower Bollinger Band around $1,467.
XRP Recovery Remains Fragile
XRP was trading around $1.18, continuing its gradual recovery but still facing significant technical headwinds. The token remains below its 20-day Bollinger Band midpoint and key moving averages, indicating that the broader trend remains under pressure.
While the MACD histogram points to improving momentum, the RSI remains below the neutral 50 mark, suggesting that buying strength remains limited. Key resistance levels are located at $1.20, $1.28 and $1.38, while a stronger breakout would require a move above the 200-day EMA near $1.59.
Despite ongoing technical challenges, the broader recovery across cryptocurrency markets highlights growing investor optimism as geopolitical tensions ease and risk sentiment improves.
