Flagship altcoin Ethereum (ETH) has achieved a significant milestone, reaching a new record high for the first time in nearly four years. The cryptocurrency surged by over 15% in a single day, hitting a peak of $4,885 at 21:08 UTC on the Bitstamp exchange. This monumental rally was primarily triggered by Federal Reserve Chairman Jerome Powell, who explicitly signaled an upcoming rate cut next month, causing an immediate and strong reaction across the crypto market.

The impact of Ethereum's surge was also evident in broader market dynamics. Bitcoin's dominance, according to CoinGecko data, plunged to just 56.5%. The rapid price increase led to substantial liquidations in the derivatives market, with CoinGlass data revealing that a staggering $287 million worth of ETH shorts were wiped out over the past 24 hours. In comparison, Bitcoin saw $67 million in short liquidations during the same period, highlighting the intensity of Ethereum's movement. A notable $10 million ETH liquidation order occurred on the OKX exchange.

Veteran commodity trader Peter L. Brandt, known for his long career since the mid-1970s and now also involved in Bitcoin, commented on Ethereum's new historic price peak. Despite his past criticisms of ETH as an asset, Brandt acknowledged its trading potential, remarking with a single word, “Powerful,” in response to a chart displaying ETH's breakout pattern. Coinbase CEO Brian Armstrong also celebrated the event, posting a congratulatory tweet to the community.

Looking ahead, market sentiment suggests continued optimism for Ethereum. Polymarket bettors place a 74% chance on ETH hitting the coveted $5,000 level this August. Furthermore, there's a 29% probability of the altcoin reaching $5,400 by the last week of August. For the longer term, the odds of ETH soaring to $10,000 in 2025 currently stand at 16% on Polymarket. While Ethereum captured headlines, Bitcoin also experienced an uplift, adding 4.6% and touching $117,420, although it later slightly rebounded to $115,700.