Flagship altcoin Ethereum (ETH) has achieved a new historic price peak, reaching $4,885 at 21:08 UTC on the Bitstamp exchange. This monumental surge marks the first time ETH has set a new record high in nearly four years, specifically since its previous all-time high was attained in November 2021. The token exhibited a more than 15% increase in a single day, dramatically outperforming other cryptocurrencies.

The significant rally in Ethereum's value was primarily catalyzed by Federal Reserve Chairman Jerome Powell's explicit signal regarding an impending rate cut, which is anticipated for the coming month. This announcement triggered an immediate and robust reaction across the cryptocurrency market, with altcoins, particularly Ethereum, leading the charge and investors responding swiftly to the economic news.

The powerful upward momentum in ETH's price led to substantial market liquidations. Data from CoinGlass reveals that a staggering $287 million worth of ETH short positions were wiped out within a 24-hour period, a figure significantly higher than the $67 million in Bitcoin shorts liquidated during the same timeframe. Notably, a single $10 million ETH liquidation order was executed on the OKX exchange earlier, highlighting the intensity of the market movement.

Concurrently, Bitcoin's dominance in the crypto market saw a notable decline, plunging to just 56.5% according to CoinGecko data. While Bitcoin (BTC) also experienced an increase, adding 4.6% and briefly hitting $117,420 before settling around $115,700, Ethereum's performance overshadowed it. As of press time, Ethereum was trading at approximately $4,739, slightly below its peak, maintaining strong investor interest.

Prominent figures in the trading and cryptocurrency communities have commented on Ethereum's impressive ascent. Veteran commodity trader Peter L. Brandt, who has been active in trading since the mid-1970s and is also involved with Bitcoin, acknowledged its "Powerful" surge. Despite previous criticisms of ETH as an asset, Brandt stated that, as a trader, he would engage with it regardless of his personal views. Coinbase CEO Brian Armstrong also celebrated the milestone, extending congratulations to the community via a tweet, highlighting the widespread recognition of ETH's achievement.

Looking ahead, market sentiment and predictions indicate further potential for Ethereum. According to Polymarket bettors, there is a 74% chance for ETH to reach the coveted $5,000 mark this August, with a 29% probability of soaring even higher to the $5,400 level during the last week of the month. Longer-term forecasts on Polymarket suggest a 16% chance of ETH hitting $10,000 in 2025, underscoring strong confidence in its continued growth trajectory.