Flagship altcoin Ethereum (ETH) has achieved a new record high for the first time in nearly four years, hitting a peak of $4,885 at 21:08 UTC on the Bitstamp exchange. This significant milestone represents a surge of more than 15% in a single day. The impressive rally was primarily triggered by Federal Reserve Chairman Jerome Powell's explicit signal of an upcoming rate cut, which immediately impacted the broader cryptocurrency market.

Alongside Ethereum's ascent, Bitcoin's dominance experienced a notable decline, plunging to just 56.5% according to CoinGecko data. The dramatic price movement in ETH also led to substantial market liquidations. CoinGlass data revealed that a staggering $287 million worth of Ethereum shorts were liquidated within 24 hours, a figure significantly higher than the $67 million in Bitcoin shorts wiped out during the same period. This included a specific $10 million ETH liquidation order observed on the OKX exchange.

Veteran commodity trader Peter L. Brandt, a long-time figure in the trading business who has recently also ventured into Bitcoin, commented on Ethereum's new historic price peak. Despite his past criticisms of ETH as an asset, Brandt acknowledged his stance as a trader, stating he would still engage with it. Sharing an X post from Cheds Trading, which highlighted a breakout pattern for ETH on a TradingView chart, Brandt concisely described the surge with the single word: “Powerful.” This reinforced the market's reaction to Ethereum's jump from $4,238 to $4,885, surpassing its previous all-time high set in November 2021.

The broader crypto market also reacted positively, with Bitcoin (BTC) experiencing its own uptick, adding 4.6% and briefly hitting $117,420 before slightly rebouding to trade around $115,700. Coinbase CEO Brian Armstrong also acknowledged and celebrated Ethereum's new all-time high, sharing a congratulatory tweet to the community.

Looking ahead, Polymarket bettors are showing strong confidence in Ethereum's continued momentum. Predictions indicate a 74% chance of ETH reaching the highly anticipated $5,000 level this August. Furthermore, there is a 29% chance of the altcoin surging to $5,400 during the last week of August. For the longer term, the odds of Ethereum hitting $10,000 in 2025 currently stand at 16% on Polymarket, suggesting sustained bullish sentiment.