Celsius and the Ethereum network are two independent things. Ethereum was around before Celsius and will probably be around long after Celsius has faded away. Yes, Celsius could potentially have large, negative impact on Eth in the short-term, but the two are in no way intrinsically linked like Terra UST and Luna, for example.

Secondly, it is a matter of when, not if, for The Merge, and obviously The Merge will be a huge net positive for Ethereum over the long run.

So I guess Ethereum is dead; long live Ethereum.