Flagship altcoin Ethereum (ETH) has achieved a significant milestone, reaching a new 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% in a single day. This surge was notably attributed to Federal Reserve Chairman Jerome Powell's explicit signal of an upcoming rate cut, which spurred immediate reactions across the crypto market.

The powerful rally in Ethereum also coincided with a notable shift in market dynamics, as Bitcoin's dominance experienced a decline, plunging to just 56.5% according to CoinGecko data. This shift underscores the growing influence and independent momentum of altcoins like Ethereum. The rapid price movement led to a substantial liquidation of short positions, with CoinGlass data indicating that a staggering $287 million worth of ETH shorts were wiped out over a 24-hour period. In stark contrast, only $67 million worth of Bitcoin shorts were liquidated during the same timeframe, further highlighting the intensity of Ethereum's upward trajectory. A single $10 million ETH liquidation order was observed on the OKX exchange.

Market observers and bettors on Polymarket are now eyeing higher price targets for Ethereum. There is a 74% chance that ETH will hit the coveted $5,000 level this August, with a 29% probability of it even reaching $5,400 during the last week of the month. Looking further ahead, the odds of Ethereum touching $10,000 by 2025 currently stand at 16% on Polymarket, reflecting growing investor confidence.

Veteran commodity trader Peter L. Brandt, known for his extensive experience since the mid-1970s and his more recent involvement in Bitcoin, commented on Ethereum's new historic price peak. Despite his past criticisms of ETH as an asset, Brandt acknowledged its strong performance, stating that as a trader, he would still engage with it. He described the surge as