Flagship altcoin Ethereum (ETH) has achieved a significant milestone, reaching a new record high for the first time in nearly four years. The token soared to a new peak of $4,885 at 21:08 UTC on the Bitstamp exchange, demonstrating an impressive surge of more than 15% in a single day.

This powerful ascent was largely triggered after Federal Reserve Chairman Jerome Powell explicitly signaled an upcoming rate cut next month, causing an immediate reaction across the crypto market. Veteran commodity trader Peter L. Brandt, who has been in the trading business since the mid-1970s, described the surge as “Powerful,” despite his past criticisms of ETH as an asset. The previous all-time high for Ethereum was recorded in November 2021.

The market's rapid response led to substantial liquidations of short positions. CoinGlass data indicates that a staggering $287 million worth of shorts were wiped out over the past 24 hours, with Ethereum shorts significantly outweighing Bitcoin shorts, which saw only $67 million liquidated during the same period. A notable $10 million ETH liquidation order also took place on the OKX exchange.

As Ethereum surged, Bitcoin's dominance concurrently plunged to just 56.5%, according to CoinGecko data. However, BTC also experienced an upward movement, adding 4.6% and reaching $117,420 before slightly rebounding to $115,700.

Looking ahead, Polymarket bettors are optimistic about Ethereum's continued momentum. They estimate a 74% chance of ETH hitting the much-coveted $5,000 level this August, with a 29% chance of surging to $5,400 during the last week of the month. The odds of ETH reaching $10,000 in 2025 are currently set at 16% on Polymarket. The new historic price peak was also acknowledged by Coinbase CEO Brian Armstrong, who congratulated the community on the achievement.