Ethereum (ETH), the flagship altcoin, has recently achieved a monumental milestone, hitting a new record high for the first time in nearly four years. The digital asset soared to an unprecedented peak of $4,885 at 21:08 UTC on the Bitstamp exchange, demonstrating an impressive surge of over 15% within a single day. This significant price movement has reshaped the cryptocurrency landscape, drawing considerable attention from traders and investors worldwide.

The primary catalyst behind Ethereum's explosive ascent was an explicit signal from Federal Reserve Chairman Jerome Powell, indicating an upcoming rate cut scheduled for the following month. This announcement sent ripples through the crypto market, triggering immediate and positive reactions across various assets. As Ethereum's value climbed, Bitcoin's dominance simultaneously experienced a notable decline, plunging to just 56.5% according to CoinGecko data, highlighting a shift in market sentiment towards altcoins.

The rapid price increase in ETH led to substantial liquidations in the derivatives market. CoinGlass data reveals a staggering $287 million worth of Ethereum shorts were wiped out over the past 24 hours. In stark contrast, Bitcoin shorts liquidated during the same period amounted to a comparatively lower $67 million. This intense liquidation pressure on ETH shorts was further exemplified by a single $10 million ETH liquidation order executed on the OKX exchange earlier in the day, underscoring the swift and powerful market correction against bearish positions.

Looking ahead, market participants and analysts are already setting their sights on new price targets for Ethereum. According to Polymarket bettors, there is a 74% probability that ETH will reach the highly anticipated $5,000 level by August. Furthermore, a 29% chance exists for the flagship altcoin to surge even higher, touching the $5,400 mark during the last week of August. Long-term projections also remain optimistic, with Polymarket indicating a 16% chance of ETH reaching an ambitious $10,000 by 2025, reflecting strong confidence in its sustained growth trajectory.

The new historic price peak also garnered commentary from prominent figures in the financial and crypto communities. Old-school commodity trader Peter L. Brandt, known for his decades of experience and previous criticisms of ETH, acknowledged the surge as “Powerful.” Sharing a TradingView chart from “Cheds Trading” depicting ETH's breakout pattern, Brandt’s concise yet impactful comment highlighted the significance of the event. Brian Armstrong, CEO of Coinbase, also celebrated Ethereum's achievement, posting a congratulatory tweet to the community, further amplifying the excitement surrounding the altcoin's performance.

While Ethereum commanded the spotlight, Bitcoin (BTC) also saw gains, adding 4.6% and briefly hitting $117,420 due to a massive green candle before slightly rebounding to trade at $115,700. However, the narrative of the day was undeniably dominated by Ethereum's powerful surge to its new all-time high, marking a pivotal moment in its market history and reinforcing its position as a leading force in the digital asset space.