December often teases the crypto market with hope. Some years bring a late surge higher, while others end with thin liquidity and disappointment. As the year winds down, the question returns: can Ethereum (ETH), Ethereum Classic (ETC), and XRP still deliver a Santa rally, or has the market already checked out for the year?

Recent price action suggests caution. A recent interest rate cut was expected to support risk assets, but the response across crypto has been muted. Instead of a strong rally, the market delivered a subdued reaction.

For now, the setup is clear but unresolved. Conditions exist for a late move, but until one side of the broader economic picture takes control, the market remains stuck between hope and hesitation.

ETH: Structure Intact, Momentum on Pause

Ethereum remains the backbone of smart contracts, yet ETH’s price action late this year has frustrated many traders. While the network continues to evolve, the token has struggled to reflect that progress.Price charts show consolidation rather than panic. ETH has held key support zones despite thinning volume and reduced risk appetite ETH price This compression suggests stability, but not momentum.

A recent network upgrade significantly reduced Layer 2 transaction costs. From a usability and scaling perspective, this was a success. From a price standpoint, however, it introduced short-term pressure. Lower fees mean less ETH is burned on the base layer, weakening the deflationary narrative that previously supported ETH’s price.

One stabilizing factor has been steady accumulation by large market participants, helping establish a soft floor in the $2,800–$3,000 range. This has absorbed selling pressure and limited downside risk, but it has not yet created enough demand to spark a strong rally.

At the time of writing, ETH is trading near $2,950.

A late move higher would likely require stability rather than excitement. If ETH continues to trade sideways instead of breaking lower, sidelined capital could return. However, a sharp decline in Bitcoin would likely pull ETH down as well. Ethereum rarely rallies in isolation 7For now, ETH looks supported, but stuck.

ETC: Thin Liquidity Cuts Both Ways

Ethereum Classic tends to exaggerate broader market moves. Its recent price action reflects that pattern clearly. With thinner liquidity, ETC experiences deeper swings, which can look concerning during downturns but can also enable sharp rebounds ETC often reacts later in a market cycle, particularly when traders rotate into smaller-cap assets after larger coins stabilize. A Santa rally scenario for ETC depends less on fundamentals and more on overall risk appetite. If ETH and Bitcoin remain stable, ETC can move quickly due to its lower liquidity.

At the time of writing, ETC is trading around $12.

The risk remains that without sustained volume, any rally could fade just as quickly as it begins.

XRP: Narrative Still Matters

XRP is one of the most narrative-driven assets in the crypto market. Its price history shows long periods of consolidation followed by sudden directional moves. Recently, price action has been XRP price choppy, signaling uncertainty rather than conviction.

XRP often responds more to shifts in sentiment than to macroeconomic changes. That said, easier financial conditions do help. Lower rates reduce pressure across risk assets and can improve sentiment among retail-focused markets, potentially limiting further downside.

At the time of writing, XRP is trading near $1.90.

For XRP, a Santa rally would likely require two key ingredients: broader market stability and renewed confidence that downside risk is limited. Without these, XRP tends to drift rather than trend.

Does the Rate Cut Change the Game?

The recent rate cut is not a guaranteed catalyst, but it does matter. Lower rates support liquidity, ease funding stress, and make holding cash less attractive. Historically, these conditions are supportive for crypto, though the impact is rarely immediate.

Sentiment remains fragile. After recent volatility, traders are cautious, and year-end positioning often favors reduced risk. Still, December rallies usually start quietly, when selling pressure fades rather than when optimism peaks

About Toobit

To stay updated on the latest crypto news and happenings, make sure to follow Toobit. Toobit is a leading platform for crypto trading, offering a seamless experience for both beginners and experienced traders.

With a strong focus on futures trading and derivatives trading, Toobit allows users to maximize their potential profits through leverage trading.

Traders can explore a wide range of asset staking advantage of advanced tools and risk management features. With live coin updates, where you can get the latest news on SHIB price, PEPE price, and even XLM price, Toobit does it all!

Create an account with Toobit today and find out how we offer A Bit More Than Crypto.