Flagship altcoin Ethereum (ETH) has achieved a new historic price peak, reaching $4,885 at 21:08 UTC on the Bitstamp exchange. This marks its first record high in nearly four years, demonstrating a powerful surge of over 15% within a single day. The previous all-time high for Ethereum was recorded in November 2021.

This significant price movement followed an explicit signal from Federal Reserve Chairman Jerome Powell regarding an upcoming rate cut next month, which had an immediate and strong impact on the crypto market. While Bitcoin also experienced an increase, adding 4.6% to hit $117,420 before settling slightly lower at $115,700, Ethereum's performance was particularly notable in leading the market charge.

The impressive surge in ETH contributed to a notable shift in market dynamics, with Bitcoin's dominance plunging to just 56.5% according to CoinGecko data. The rapid price increase led to substantial liquidations, with CoinGlass data revealing a staggering $287 million worth of Ethereum shorts wiped out over 24 hours. In contrast, Bitcoin shorts liquidated during the same period amounted to only $67 million, highlighting the intensity of ETH's upward momentum, which included a $10 million ETH liquidation order on the OKX exchange.

The new historic price peak drew attention from seasoned traders and industry leaders alike. Old-school commodity trader Peter L. Brandt, known for his decades in the trading business and now also involved with Bitcoin, remarked on the “Powerful” ETH surge. Despite his past criticisms of Ethereum as an asset, Brandt acknowledged its trading potential and shared an X post by Cheds Trading illustrating a breakout pattern for ETH. Coinbase CEO Brian Armstrong also publicly celebrated the new all-time high, congratulating the Ethereum community.

Looking ahead, Polymarket bettors are showing significant optimism for Ethereum's continued growth. There is a 74% chance, according to bettors, that ETH will reach the much-coveted $5,000 level this August. Furthermore, the odds of the flagship altcoin surging to $5,400 during the last week of August stand at 29%. Long-term projections also show a 16% chance of ETH hitting $10,000 in 2025 on Polymarket, reflecting strong confidence in its future trajectory.