The ethereum is popular and has such a large capitalization, only thanks to the large number of ICOs. Sooner or later, ICO will go to the past and then the ethereum will become less in demand and will fall dramatically in price. For this I believe that he is not a competitor to bitcoin.
I dont think that launching of ICOs will stop until quite long. People will launch projects, ICOs and Dapps, but all of it will be regulated in near future and it will be made compulsory for the devs to register the project or ICO under the government before launching it. Though the number of ICOs will reduce, but this will ensure security against ponzi schemes and scams. Ethereum price will not fall as ICOs are not the only thing that launch on the platform. Ethereum has smart contract and advance technology