Ethereum (ETH), the flagship altcoin, has achieved a significant milestone by reaching a new all-time high (ATH) of $4,885. This historic peak was recorded on August 22, 2025, at 21:08 UTC on the Bitstamp exchange, marking the first time ETH surpassed its November 2021 record. The surge saw Ethereum's price jump by over 15% in a single day, from approximately $4,238 to its new high, triggering widespread excitement across the cryptocurrency community and causing substantial market shifts.

The primary catalyst for this 'powerful' surge was Federal Reserve Chairman Jerome Powell's explicit signal that a rate cut would occur the following month. This announcement from the head of the Federal Reserve immediately impacted the crypto market, leading to an upward trend for several assets. Concurrently, Bitcoin's dominance experienced a notable decline, plunging to just 56.5% according to CoinGecko data, as attention and capital flowed into Ethereum.

The rapid price ascent led to a massive liquidation of short positions. CoinGlass data revealed that a staggering $287 million worth of Ethereum shorts were wiped out within 24 hours. For context, only $67 million worth of Bitcoin shorts were liquidated during the same period. A particularly significant event was a $10 million ETH liquidation order executed on the OKX exchange, highlighting the intensity of the market movement against bearish bets.

Seasoned traders and industry leaders reacted to Ethereum's new ATH. Old-school commodity trader Peter L. Brandt, known for his extensive experience since the mid-1970s, described the surge as 'Powerful,' despite his historical criticisms of ETH as an asset. Coinbase CEO Brian Armstrong also celebrated the event, extending congratulations to the Ethereum community. Long-term ETH proponent Anthony Sassano went further, asserting that Ethereum is more decentralized and a better store of value than Bitcoin, suggesting that there's no longer a reason to buy BTC over ETH. This sentiment was echoed by Fundstrat's Tom Lee, who believes there's a 'very high probability' of ETH flipping BTC in market capitalization.

Looking ahead, the Ethereum community is now anticipating a period of price discovery. Polymarket bettors indicate a 74% chance of ETH hitting the $5,000 level this August, with a 29% chance of reaching $5,400 by the end of the month. Furthermore, the odds of ETH reaching $10,000 in 2025 currently stand at 16%. The ETH/BTC ratio has also seen a dramatic increase, surging from 0.017 to 0.041 in just four months, signifying Ethereum's significant outperformance. Another positive indicator is the decreasing Ethereum unstaking queue, which dropped below 15 days for the first time in weeks after peaking on August 20, signaling growing interest and confidence in the network. As of press time, Ethereum was trading around $4,710 - $4,739.