It is really struggling. Transaction traffic on Ethereum is painfully slow due to ever increasing ICO traffic, much of which Ethereum itself admits is fraudulent.
Considering security also, the Ethereum community is hugely divided. ETH actually has no real-world use cases.
If ICO traffic is ethereum's problem, I think they should resolve it quickly. Maybe creating an ether fork ie an alternative for these ICOs to get attached to might resolve the problem. What do you think?