The cryptocurrency market continues to underperform, with the total crypto market cap close to losing the $2 trillion support level.

The broader cryptocurrency market has been underperforming over the past few weeks. Since Bitcoin and Ether reached new all-time highs in November, the market has been underperforming.

Bitcoin has lost more than 30% of its value since the all-time high, while Ether has also lost nearly that percentage. Ether has managed to stay above the $4,000 support level for most of the bearish run.

However, the second-largest cryptocurrency by market cap has now lost that support level and risks dropping lower. Ether's price has dropped below the $4,000 mark yesterday and could drop lower over the coming hours.

At press time, ETH is trading at $3,840 per coin, down by less than 4% over the past 24 hours. Ether risks losing the $3,800 support level if the current market condition persists.

Key levels to watch

The ETH/USD 4-hour chart is bearish, similar to the broader cryptocurrency market. The cryptocurrency's technical indicators suggest that Ether is currently underperforming, and the bears are fully in control.

Ether's MACD line is deeply rooted below the neutral zone, indicating that the bearish sentiment in the market is still in play. Furthermore, the 14-day relative strength index (RSI) of 49 shows that Ether could soon enter the oversold territory.

If the current market condition persists, then Ether could drop below the first major support level at $3,420 over the coming hours. In the event of an extended bearish performance before the end of the day, ETH could drop below the $3,000 level for the first time since October.

However, if the bulls regain control of the market, Ether could rally towards the first major resistance level above $4,100. An extended bullish performance could allow the second-largest cryptocurrency to touch the $4,300 mark before the end of the day. However, ETH would need the support of the broader crypto market if it intends to rally higher.