There are a lot of things wrong in Ultear vs Gray. Yes her magic was countered by Ice Blood, but so what?! It's not like he has enough blood to keep up anyway, so all she needed to do is stalling.
Here Gray stopped using his Blood Ice but changed to his normal ice make, but why didn't Ultear use her Time arc now?! Don't give me that she didn't have enough magic power bs since she restored the big ass Tenrou tree later, not to mention the ass pull memories in the ocean... So much PiS and CiS here.
And yeah Ultear is quite a hard counter to Erza/Kagura, she can make their swords and armors crumble to dust instantly.