It seems to me that this is not the main reason why the price of Ethereum is now falling. The fall of Ethereum was caused by a multitude of factors and it is now unrealistic to determine which of these factors had the greatest impact on the price.
A lot of factors are affecting the market price of Ethereum as well as the prices of all other cryptos so it is very clear that we shouldn't just look at a specific factor like the bad news only. Market volume, popularity and image, market position, investors and etc. are factors to be also considered. What happens with these factors affects the market price of the coin, causing it to fluctuate.
When it comes to cryptos, no ones which coin and when will a coin have a good and high price for selling. They are very unpredictable and if one is not careful in making decisions especially when it comes to investing, he may loss everything.