Flagship altcoin Ethereum (ETH) has achieved a new record high, reaching $4,885 at 21:08 UTC on the Bitstamp exchange. This surge marks the first time in nearly four years that ETH has set a new peak, experiencing a remarkable increase of over 15% in a single day. This significant event saw Bitcoin's dominance simultaneously plunge to 56.5%, according to CoinGecko data, highlighting a shift in market dynamics.

The catalyst for Ethereum's impressive rally was an explicit signal from Federal Reserve Chairman Jerome Powell, indicating an upcoming rate cut next month. This announcement triggered an immediate and strong reaction across the cryptocurrency market, with ETH being a primary beneficiary.

The rapid price movement led to substantial liquidations in the market. CoinGlass data reveals that a staggering $287 million worth of shorts were liquidated over the past 24 hours, significantly dwarfing the $67 million worth of Bitcoin shorts wiped out during the same period. A notable $10 million ETH liquidation order also occurred on the OKX exchange.

Market observers and traders are now looking towards new price targets. According to Polymarket bettors, there is a 74% chance that ETH will hit the coveted $5,000 level this August. Furthermore, predictions suggest a 29% chance of the altcoin surging to $5,400 by the last week of August. Looking further ahead, the odds of ETH reaching $10,000 in 2025 currently stand at 16% on Polymarket, reflecting growing optimism.

Veteran commodity trader Peter L. Brandt, known for his long career since the mid-1970s and now also active in Bitcoin, commented on Ethereum's new historic price peak. Despite his past criticisms of ETH as an asset, Brandt acknowledged its trading potential, stating that as a trader, he would engage with it regardless of his personal views. Sharing a chart from Cheds Trading illustrating ETH's breakout pattern, Brandt succinctly described the surge as 'Powerful'. The previous all-time high for Ethereum was reached in November 2021.

While Ethereum dominated headlines, Bitcoin also experienced an uplift, adding 4.6% and briefly hitting $117,420 due to a massive green candle, though it later slightly rebounded to change hands around $115,700. Coinbase CEO Brian Armstrong also acknowledged Ethereum's achievement, posting a celebratory tweet to the community regarding the new all-time high.