Why does my AE say ethernet unplugged and flashing amber

My Airport Express has been working fine for several years until today.  It is flashing amber and saying "Ethernet unplugged".  This unit has been operating purely wirelessly without a connection to an ethernet cable since I installed it.  I have used it with Airtunes.
I have a second AE, with the same configuration as the now failed AE, connected to a printer and it is also not connected to an Ethernet cable, and it is operating just fine.  When I go to th configuration file in Airport Utility for the second AE and selece the Internet icon, the Connect Using drop down selection reads Wireless Network and is grayed out.
When I do this with the failed AE, it does not even give me the option under Connect Using of Wireless Network.   The only choices are Ethernet Cable or PpOe.
I have done a hard reset and have not had any luck with it.
Anyone have any ideas.  I have a feeling my only option is to go buy a new one.
Thank you!

At this point, I would suggest performing a "factory default" reset on the AirPort Express in question. Note: You may have to perform this a few time to get it to "stick."
If after the reset(s), the base station is still performing as you have described, it may have failed.

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