Ethereum demonstrated its sensitivity to macro risk dynamics as reports of potential Iran-U.S. ceasefire negotiations sparked a significant rally yesterday. The second-largest cryptocurrency surged 3.7% to $2,130 following news of diplomatic talks, outpacing Bitcoin's 3% gain according to CoinMarketCap. This rally emerged from heavily bearish sentiment, with $273.8 million in positions liquidated within 24 hours, predominantly affecting short positions. Analysts noted that peak negative social sentiment often serves as a contrarian indicator preceding sharp recoveries. The price action highlights Ethereum's role as a risk-on asset that responds strongly to global market sentiment shifts, particularly when geopolitical tensions appear to ease. While the sustainability of this move depends on actual diplomatic outcomes, the rally demonstrates Ethereum's ability to lead altcoin recoveries during favorable macro conditions.