I have recently produced a number of prototypes using the Microchip ENC424J600 Ethernet IC.
I can't a full circuit diagram as this is a commercial product but I have reproduced the relevant part of the circuit below. What I am seeing is that as soon as I apply power the green LED lights, indicating a good link, even without an Ethernet cable plugged in.
If I am to believe the data sheet this LED should not require me to have good communications with the micro that is driving it and this LED should work provided it is powered, the oscillator is running and the Ethernet cable is plugged in and connected to a suitable device such as a hub.
Does anyone have experience with this IC and can suggest what I may be doing wrong.
If I have understood the data sheet correctly this is a typical application circuit
As as been pointed out in comments the data sheet does not show the TPIN transformer with the centre tap pulled up to 3V3. My original circuit does not have this connection. I added this because it is shown on the circuit diagram of Microchips demo board for this IC. The LED performs in the same way in either case.
I have also scoped the OSC1 pin to confirm it has a clean signal.