It's not just China
I think what we may be seeing in China is the beginning of the massive crackdown which I predicted months back. I predicted the SEC and IRS are likely giving extra scruntiny to ICOs and crypto due to some risk we don't know about. That risk could be terrorism, or it could have to do with North Korea, but when multiple countries join forces and crack down at once usually it's because something is going on behind the scenes. The ICO era may be ending and what does this mean for Ethereum?
Now US and Chinese citizens are being slowly excluded from ICOs. In the US it's because of the complex regulations and debate over whether something is a security. In China it's an outright ban. The overall outcome is the same, in that participation in ICOs is becoming increasingly restricted.
How will this effect the price of Ethereum, the price of various tokens? Ethereum is recognized not as being a security by the SEC. China only wants to ban new ICOs so if the ICO is completed it seems to not be a problem. It seems to me that the US and China are trying to contain risks due to international events which most of us are not privy to.