Ether (ETH) has been underperforming, down 10% over the last week, compared to Bitcoin's 6% drop and a 5.3% decrease in the total crypto market cap. Market indicators suggest ETH may see a deeper correction before recovery. Reasons for ETH's underperformance include Bitcoin-specific factors, a decline in Ethereum's network activity, and competition from Solana in the layer 1 sector. ETH's latest downturn saw it lose a critical support level around the $3,500 demand zone, turning it into resistance. If this resistance level sees high activity from sellers, ETH's price could sink further.