The demonstration came just hours after a Jerusalem district court convicted the main suspect in the July 2014 murder of a Palestinian teenager an incident that ignited tensions in the lead-up to the 2014 summer war between Israel and Gaza's Islamic militant group Hamas.
It's unclear what sentence the soldier faces but the teen's killer could face life in prison.
Israeli defense officials have criticized the conduct of the soldier identified Monday as a medic named Sgt Elor Azaria while large segments of the public have rallied behind him and accused the government of abandoning him at a time of heightened conflict with the Palestinians.
At the time of the incident, the military said two Palestinians had been shot and killed while carrying out a stabbing attack that wounded an Israeli soldier.
But a video released by the Israeli human rights group B'Tselem showed one of the attackers still alive after the initial shooting. The video, taken by a B'Tselem volunteer, shows Azaria calmly raising his rifle, cocking the weapon and firing at the assailant's head. An autopsy determined the shot to the head was the cause of death.
"I hope that a way will be found to balance between the action and the overall context of the event," the prime minister added.
Earlier in the day, a Jerusalem district court convicted 30-year-old Yosef Haim Ben David of murder, rejecting a plea that he was not responsible for his actions in the July 2014 killing of the Palestinian teen. Ben David is to be sentenced next month and could face life in prison.
Two other Israelis have already been sentenced for their roles in the murder of 16-year-old Mohammed Abu Khdeir in revenge for the three Israeli teens abducted and killed by Palestinians earlier that summer.
The gruesome killing caused deep outrage and wide condemnation in Israel and was part of a series of events that helped spark the Gaza war later that summer.
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