ETH has experienced another plunge, dropping to around $3,200, with the market showing an overwhelmingly green chart. The 24-hour decline approaches 3%, and the total liquidation amount across the network has skyrocketed to $300 million, with over 110,000 users liquidated. Panic is spreading quickly, but upon reflection, there might be something else behind this sharp drop.

Interestingly, a leading platform just saw a massive inflow of ETH worth $520 million. Such a transfer size clearly isn't retail investor behavior. Large funds are creating volatility to gather liquidity—this pattern is often seen in bull markets—first generating panic to shake out short-term holders, then buying up at lower prices.

More importantly, while everyone is watching the price fluctuations, they overlook the recent Fusaka upgrade completed on December 3rd. The impact of this upgrade on the ETH ecosystem could be far more significant than short-term price movements.

It mainly addresses two pain points: First, significant reduction in L2 gas fees, potentially lowering on-chain transaction costs to just a few cents in the future. This is a qualitative change for blockchain games and social applications, lowering the user entry barrier substantially. Second, wallet experience improvements, eliminating the need for the cumbersome mnemonic phrase system.

Technological upgrades are indeed hard to reflect immediately in the price. But if they can reduce gas fees and lower usage barriers, both ETH's user base and application scenarios will expand. This is the real long-term value support, much more meaningful than merely speculating on candlestick charts.

Is the current price a bottom? Hard to say. But the technical aspects are improving, and the fundamentals are being optimized—that's for sure.