Flagship altcoin Ethereum (ETH) has achieved a significant milestone, reaching a new record high of $4,885 for the first time in nearly four years. This historic peak was recorded at 21:08 UTC on the Bitstamp exchange, following an impressive surge of over 15% within a single day. This notable event highlights a dynamic shift in the cryptocurrency market landscape.

The catalyst for this monumental surge was an explicit signal from Federal Reserve Chairman Jerome Powell, who indicated a forthcoming rate cut in the next month. The crypto market reacted instantaneously to this news, leading to widespread price movements. Concurrently, Bitcoin's dominance in the market saw a notable decline, plunging to just 56.5% according to CoinGecko data, as attention and capital shifted towards altcoins.

The rapid price increase led to substantial financial impacts, particularly for traders with short positions. CoinGlass data revealed that a staggering $287 million worth of shorts were liquidated over a 24-hour period, a figure significantly higher than the $67 million in Bitcoin shorts wiped out during the same timeframe. A particularly large $10 million ETH liquidation order was observed on the OKX exchange, further underscoring the volatility and swift market reaction.

Looking ahead, market sentiment and predictions are optimistic. Polymarket bettors assign a 74% chance for ETH to reach the coveted $5,000 level this August. Furthermore, there's a 29% probability of the flagship altcoin surging to the $5,400 mark during the final week of August. Long-term prospects also look promising, with a 16% chance of ETH hitting $10,000 by 2025.

The new historic price peak also garnered attention from veteran commodity trader Peter L. Brandt, who has been active in trading since the mid-1970s and is also involved with Bitcoin. Despite his past criticisms of ETH, Brandt acknowledged its power as a trader, commenting