In the short term, China’s ban on ICOs and shutting down of exchanges is bearish for ETH and BTC because:
- A lot of the hot money from China leaves the ICO, Bitcoin and Ethereum markets.
- Some hot money cryptocurrency buyers will, at the margin, buy less or not buy. Some will not bother using VPNs, exchanging Chinese Yuan for US dollars or gold on the black market, or taking trips to island jurisdictions like Malta or to Switzerland to open up accounts to move assets including cryptcurrencies around.
  Chinese regulators and other government officials need time to figure out how to regulate cryptocurrencies, including ICO tokens.