This card destroys certain decks nearly completely.
But hey, please make it reduce spell damage (from psion, and shard of wisdom) as well. Would make the card more viable, and a good counter against those shard of wisdom. Would also fit in the aether element thematically and is a fitting choice for that other effect:
Here 'spell' means a spell card played directly from the hand, or the attack of a spell-damage dealing creature. Note that abilities do not count as spells.
Also, if it wouldn't reduce spell damage, that affect would be pretty useless. (And thinking of aether dragon with 14 spell damage, even if it is reduced by 1 every attack, it's still strong...)