Ethereum (ETH), the flagship altcoin, has reached a significant new record high for the first time in nearly four years, demonstrating a powerful surge in the cryptocurrency market. The token hit an unprecedented peak of $4,885 at 21:08 UTC on the Bitstamp exchange, marking an impressive increase of over 15% within a single day. This historic event surpasses its previous all-time high set in November 2021.

The primary catalyst for this monumental rally appears to be the recent statement from Federal Reserve Chairman Jerome Powell, who explicitly signaled the likelihood of a rate cut next month. The crypto market reacted immediately and positively to this news, creating a strong upward momentum for altcoins, particularly Ethereum.

The surge in Ethereum's price had a profound impact across the broader cryptocurrency landscape. Data from CoinGlass reveals that a staggering $287 million worth of Ethereum shorts were liquidated over the past 24 hours. In stark contrast, only $67 million worth of Bitcoin shorts were wiped out during the same period, highlighting the intensity of ETH's upward movement. Furthermore, a single $10 million ETH liquidation order was observed on the OKX exchange, underscoring the rapid shift in market sentiment. Concurrently, Bitcoin's dominance in the market saw a notable dip, plunging to just 56.5% according to CoinGecko data, as capital flowed towards altcoins.

Prominent figures in the trading community have acknowledged Ethereum's remarkable performance. Old-school commodity trader Peter L. Brandt, a veteran in the business since the mid-1970s and now also involved with Bitcoin, commented on the new historic price peak. Despite his past criticisms of ETH as an asset, Brandt, acknowledging his role as a trader, simply described the surge as "Powerful" when sharing a TradingView chart showcasing ETH's breakout pattern. He observed the 15%+ price jump from $4,238 to $4,885. Brian Armstrong, CEO of Coinbase, also celebrated this milestone, extending congratulations to the community via a tweet, highlighting the significance of Ethereum's all-time high.

Looking ahead, market sentiment, as reflected by Polymarket bettors, indicates strong confidence in Ethereum's continued ascent. There is a 74% chance that ETH will hit the much-coveted $5,000 level this August. Furthermore, the odds suggest a 29% chance of the flagship altcoin surging to $5,400 during the last week of August. For the longer term, there's a 16% probability of ETH reaching $10,000 in 2025, according to Polymarket.

While Ethereum took center stage, Bitcoin also experienced a positive movement, adding 4.6% and briefly hitting $117,420, spurred by a massive green candle. By press time, Bitcoin had slightly rebounded and was trading around $115,700, indicating a generally bullish environment following the Federal Reserve's signals.