Thus the LORD saved Israel that day from the hand of the Egyptians, and Israel saw the Egyptians dead on the seashore. Israel saw the great power that the LORD used against the Egyptians, so the people feared the LORD, and they believed in the LORD and in his servant Moses.
This was the first action against Egypt that had an element of danger for Israel. There was going to be a slaughter without the LORD's intervention; the nation of Israel was going to be wiped out.
Israel saw the great power, and they feared, and they believed in the LORD. All the way? Fully fearing and believing? No, but a start.
Today's readings in the Psalms:
Morning: Psalm 23
Mid-day: 119:9-16
Evening: Psalm 98
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