Hamas released a video not long ago in which he pleaded for Israel to negotiate a deal.
Alexander's family has been waiting on pins and needles for his return.
His family says they have not received any word about him being released, but a very close friend of the family hopes this deal will mean that he is closer to coming home.
"Now it's even harder because we are that close and hopefully they will come back home soon, all of them," said family friend Orly Amos.
Alexander was seen on the video in November and his parents were both pleased to see him alive, but saddened to see him as a captive.
The release is seen as a step in the right direction, but there are mixed emotions because the deal does not allow all the Israeli hostages to be released.
There are also concerns that Israel is giving up too much in the peace agreement.
"The people that Israel is trading to bring home are innocent civilians including kids and women and in return they are giving up thousands of terrorists with blood on their hands," said Jason Shames, the CEO of Jewish Federation of Northern NJ.
There are also mixed emotions from the Palestinian community in North Jersey as well. They say too many innocent people in Gaza have suffered.
"Our community here has been really affected by that, we have a lot of people who live there and reside here that lost big numbers from their family there," said Palestinian community activist Raed Odeh.
Both sides have hopes that the tensions will subside, but each has apprehension.
"Finally, we have some kind of peace, but not complete peace, there will be a continuation of war," said Palestinian American Said Elatab.
In Paterson's Palestinian community Wednesday night, there was cautious optimism that Palestinian resiliency can help heal the trauma, and the physical rebuilding that could take years.
"What's going on in Gaza right now, it's not just one or two or three, it's an entire 2.3 million people, every single person has a story to tell," said Paterson resident Amjad Abukwaik.
Meanwhile in New York, the family of Israeli hostages like Brooklyn native Itay Chen are filled with hope and fear.
Loved ones of hostages from NY, NJ hold out hope for their release
"There are still 65 families that are waiting for their loved one to come out on the second phase, including my son," said Ruby Chen, the father of Israeli hostage Itay Chen. "There is a 42-day period at the moment between phase one to phase two."
Five Americans like Chen are supposed to be released in phase two.
"It is still not clear which ones are coming back alive and which ones are coming back in coffins," said Marina Rosenberg of the Anti-Defamation League.
The pause in fighting would allow desperately needed humanitarian aid to flood into Gaza and allow negotiations to begin after 16 days for a long-term ceasefire. In that time, families worry something could go wrong, and ask, why wait?
"We are advocating for the negotiators including the United States to do whatever they can to shorten that period of time," Ruby Chen said.
The third phase of the release of hostages is expected to include the remains of those who have died in the last 15 months.
Itay Chen's family got word in March that he did not survive, but they have yet to see any evidence. They will finally know if both sides can get to phase two.
The deal on Wednesday comes as 21-year-old Long Island native Omer Neutra's death was confirmed last month.
Brooklyn residents react to ceasefire deal between Israel and Hamas
"That hope to reunite with Omer alive is lost and it's very painful," his mother Orna Neutra said.
His parents have been spent the last year and a half pushing for the release of all hostages.
"The deal that was laid by President Biden and adopted by Prime Minister Netanyahu at the time back in Jume of last year, is actually the deal that is being signed as we speak, which means so many people could have been saved," Ronen Neutra said.
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