As investment, ETH certainly stuck in awkward place. For long term, people still BTC as more reliable option. Meanwhile, new token and altcoin becoming more common choice for short (and risky) term. And since these days many people don't care about decentalization, there are many altcoin with smart contract that offer lower TX fee and faster TX confirmation. So i wouldn't say it's a mistake to dump your ETH.
Yes, a Bitcoin investments is always very attractive to both old and new investors anyday, there are a consistent demands, one of the reasons for high market dominance rates.
Again, i think Etheruem is facing smart contract competition with other networks, just like you said, other networks with smart contract blockchain networks has lower transactions fees compared to Etheruem. I think that Etheruem networks fees has been one of the reason for low demands.