Flagship altcoin Ethereum (ETH) has achieved a new record high, reaching $4,885 at 21:08 UTC on the Bitstampexchange, a feat not seen in nearly four years. This monumental surge, which saw the token climb by more than 15% in a single day, surpassed its previous peak from November 2021.

The significant upward movement was largely attributed to a signal from Federal Reserve ChairmanJerome Powell, who explicitly indicated an upcoming rate cut next month. This announcement triggered an immediate and strong reaction across the cryptocurrency market, with Ethereum leading the charge.

Photo Credit: AInvest

The market's enthusiasm for ETH was further evidenced by a massive wave of liquidations. CoinGlass data revealed that approximately $287 million worth of ETH shorts were wiped out over a 24-hour period, a stark contrast to the $67 million in Bitcoin shorts liquidated during the same timeframe. A notable $10 million ETH liquidation order also occurred on the OKX exchange.

As Ethereum’s price climbed, predictions for future gains quickly emerged. Polymarket bettors now estimate a 74% chance of ETH hitting the coveted $5,000 level this August, with a 29% chance of it surging to $5,400 by the end of the month. Looking further ahead, the odds of ETH reaching $10,000 in 2025 are currently set at 16%.

Photo Credit: The Economic Times

The impressive rally drew comments from prominent figures in the financial and crypto communities. Veteran commodity trader Peter L. Brandt, who has been in the trading business since the mid-1970s and is now also involved in Bitcoin, described the ETH surge as "Powerful." Despite his past criticisms of ETH as an asset, Brandt reiterated his pragmatic stance as a trader, focusing on the opportunity regardless of personal sentiment.

Brian Armstrong,CEO of Coinbase, also acknowledged and celebrated the new historic price surge on social media. Concurrently, Bitcoin also experienced an uplift, adding 4.6% to reach $117,420, though its dominance slipped to 56.5% as Ethereum seized the spotlight.