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 an unprecedented peak of $4,885 at 21:08 UTC on the Bitstamp exchange, demonstrating a robust surge of over 15% within a single day. This impressive climb marks a return to record-breaking territory, surpassing its previous all-time high set in November 2021.

The catalyst behind this remarkable rally appears to be a crucial announcement from Federal Reserve Chairman Jerome Powell, who explicitly signaled an upcoming rate cut next month. The crypto market reacted swiftly to this news, with Ethereum leading the charge. Concurrently, Bitcoin's market dominance experienced a notable decline, plunging to just 56.5% according to CoinGecko data, as capital seemingly flowed into alternative assets.

The rapid price ascension of Ethereum led to a massive wave of liquidations for short positions. CoinGlass data reveals that a staggering $287 million worth of ETH shorts were wiped out over the past 24 hours. In comparison, only $67 million worth of Bitcoin shorts were liquidated during the same period, underscoring the intensity of the Ethereum rally. A single $10 million ETH liquidation order was observed on the OKX exchange earlier in the day, further highlighting the market's volatility.

Looking ahead, market participants are eyeing further potential gains for Ethereum. According to Polymarket bettors, there is a substantial 74% chance that ETH will hit the coveted $5,000 level this August. Furthermore, the odds suggest a 29% probability of the flagship altcoin surging to $5,400 during the last week of August. For the longer term, the possibility of ETH reaching $10,000 in 2025 is currently assessed at 16% on Polymarket.

The historic price peak also drew comments from seasoned commodity trader Peter L. Brandt, who has been active in trading since the mid-1970s and is now involved in Bitcoin. Despite his past criticisms of ETH, Brandt acknowledged its trading potential and described the surge with a single powerful word: “Powerful.” He shared an X post from Cheds Trading, featuring a breakout pattern of ETH on a TradingView chart, emphasizing the 15%+ price surge from $4,238 to $4,885.

While Ethereum commanded significant attention, Bitcoin also experienced an uplift, adding 4.6% to reach $117,420 thanks to a massive green candle before slightly rebounding to trade at $115,700. The new all-time high for Ethereum was also celebrated by prominent figures in the crypto industry, including Coinbase CEO Brian Armstrong, who posted a congratulatory tweet to the community on August 22, 2025, highlighting the significance of this achievement.