Yes, ethereum has definitely affected the market negatively.
But it is not the only reason.

I would say, the main reason is right in front of everyone's eyes: last bull run was too high too fast and totally unstable.
In simple laws of economics, supply shot way past demand and the entire year has been collapse.

Another thing that contributed to our current state, is the stock market crashing about a month ago.
We like to think that crypto is seperate from traditional markets, but that just isn't the case.
In fact, crypto is very much integrated into traditional portfolios, especially with btc futures.

erh does affect the market but not as much as btc does.