Ethereum (ETH), the flagship altcoin, has achieved a significant milestone by reaching a new all-time record high for the first time in nearly four years. The cryptocurrency surged past its previous peak, hitting $4,885 at 21:08 UTC on the Bitstamp exchange, marking an impressive increase of over 15% within a single day. This surge follows a period where Ethereum's previous all-time high was recorded in November 2021.

The primary catalyst for this monumental rally appears to be the recent announcement from Federal Reserve Chairman Jerome Powell, who explicitly signaled an impending rate cut set for the following month. The broader cryptocurrency market reacted swiftly to this news, with Ethereum leading the charge. Concurrently, Bitcoin's market dominance experienced a dip, falling to just 56.5% according to CoinGecko data, as attention shifted towards altcoins.

The rapid price ascent led to substantial liquidations across the market. CoinGlass data reveals that a staggering $287 million worth of short positions in Ethereum were wiped out over the past 24 hours. In contrast, only $67 million worth of Bitcoin shorts were liquidated during the same period, highlighting the intensity of ETH's upward movement. A notable $10 million ETH liquidation order was also executed on the OKX exchange earlier in the day.

Looking ahead, market sentiment, as reflected by Polymarket bettors, indicates strong optimism for Ethereum's continued growth. There is a 74% chance that ETH will hit the coveted $5,000 level this August, with a 29% probability of it reaching $5,400 during the last week of the same month. Furthermore, long-term projections suggest a 16% chance of Ethereum climbing to $10,000 by 2025.

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