Flagship altcoin Ethereum (ETH) has achieved a significant milestone, reaching a new record high of $4,885 at 21:08 UTC on the Bitstamp exchange. This surge marks the first time in nearly four years that ETH has surpassed its previous peak, demonstrating a remarkable increase of over 15% in a single day. The cryptocurrency market reacted strongly to this development, particularly after Federal Reserve Chairman Jerome Powell explicitly signaled an impending interest rate cut for the following month.

The impact of Ethereum's robust performance was also felt in Bitcoin's market position, with Bitcoin's dominance plunging to just 56.5% according to CoinGecko data. The rapid price movement in ETH led to substantial market liquidations, with CoinGlass data indicating that a staggering $287 million worth of Ethereum shorts were wiped out within a 24-hour period. This contrasts sharply with Bitcoin, which saw $67 million in shorts liquidated over the same timeframe. Notably, a single $10 million ETH liquidation order was executed on the OKX exchange.

Looking ahead, market sentiment is optimistic about Ethereum's continued growth. Polymarket bettors assign a 74% probability to ETH hitting the coveted $5,000 level in August, with a 29% chance of it surging further to $5,400 by the end of the month. Long-term predictions are also positive, with a 16% chance of ETH reaching $10,000 by 2025.

Veteran commodity trader Peter L. Brandt, known for his extensive experience since the mid-1970s and his involvement in Bitcoin, commented on Ethereum's new historic price peak. Despite his past criticisms of ETH as an asset, Brandt, approaching it from a trader's perspective, acknowledged the surge with a single powerful word: “Powerful.” He shared an X post by Cheds Trading, highlighting a breakout pattern of ETH on a TradingView chart. Coinbase CEO Brian Armstrong also acknowledged the achievement, tweeting his congratulations to the community on the new all-time high.

While Ethereum dominated headlines, Bitcoin also experienced a positive movement, adding 4.6% and briefly hitting $117,420 before slightly rebouding to $115,700. The broader crypto market is clearly reacting to macroeconomic signals and the shifting dynamics between the leading cryptocurrencies.