I think the point is that in respect of ETH, traders/holders really have a reason to sell: ICO's are dead.
The main selling point of ETH: gone.
No Future (although it won't go to $0.00)
Should ICO's become a thing again, higher powered chains may take over (EOS, Telos, Tron, whatever).
For now, alts that have their main trading pair in ETH have suffered immensely as well. But I can see alts decoupling from ETH (i.e., ETH going deeper down while ERC20 tokens stabilise in USD price; the world turned upside down
).
The narrative of Bitcoin still stands: Digital Gold (I am still doubting whether LN is viable to support the 'payment system' narrative).
But there is a danger that the outflow out of ETH and other alts into Bitcoin may dry up. When we reach that point, will there be enough 'native' demand for Bitcoin to avoid a true bear market (like, going convincingly below 200 MA on the daily, just like the other bear markets)?
The times they are a-changin'