diff --git a/esphome/components/esp32/__init__.py b/esphome/components/esp32/__init__.py
index 62021afea9..d0f74b7226 100644
--- a/esphome/components/esp32/__init__.py
+++ b/esphome/components/esp32/__init__.py
@@ -163,7 +163,7 @@ RECOMMENDED_ARDUINO_FRAMEWORK_VERSION = cv.Version(2, 0, 5)
 # The platformio/espressif32 version to use for arduino frameworks
 #  - https://github.com/platformio/platform-espressif32/releases
 #  - https://api.registry.platformio.org/v3/packages/platformio/platform/espressif32
-ARDUINO_PLATFORM_VERSION = cv.Version(5, 2, 0)
+ARDUINO_PLATFORM_VERSION = cv.Version(5, 3, 0)
 
 # The default/recommended esp-idf framework version
 #  - https://github.com/espressif/esp-idf/releases
diff --git a/esphome/components/ethernet/ethernet_component.cpp b/esphome/components/ethernet/ethernet_component.cpp
index 447c5b8075..0487ea5498 100644
--- a/esphome/components/ethernet/ethernet_component.cpp
+++ b/esphome/components/ethernet/ethernet_component.cpp
@@ -26,8 +26,10 @@ EthernetComponent::EthernetComponent() { global_eth_component = this; }
 
 void EthernetComponent::setup() {
   ESP_LOGCONFIG(TAG, "Setting up Ethernet...");
-  // Delay here to allow power to stabilise before Ethernet is initialised.
-  delay(300);  // NOLINT
+  if (esp_reset_reason() != ESP_RST_DEEPSLEEP) {
+    // Delay here to allow power to stabilise before Ethernet is initialized.
+    delay(300);  // NOLINT
+  }
 
   esp_err_t err;
   err = esp_netif_init();
@@ -52,30 +54,29 @@ void EthernetComponent::setup() {
 
   esp_eth_mac_t *mac = esp_eth_mac_new_esp32(&mac_config);
 
-  esp_eth_phy_t *phy;
   switch (this->type_) {
     case ETHERNET_TYPE_LAN8720: {
-      phy = esp_eth_phy_new_lan87xx(&phy_config);
+      this->phy_ = esp_eth_phy_new_lan87xx(&phy_config);
       break;
     }
     case ETHERNET_TYPE_RTL8201: {
-      phy = esp_eth_phy_new_rtl8201(&phy_config);
+      this->phy_ = esp_eth_phy_new_rtl8201(&phy_config);
       break;
     }
     case ETHERNET_TYPE_DP83848: {
-      phy = esp_eth_phy_new_dp83848(&phy_config);
+      this->phy_ = esp_eth_phy_new_dp83848(&phy_config);
       break;
     }
     case ETHERNET_TYPE_IP101: {
-      phy = esp_eth_phy_new_ip101(&phy_config);
+      this->phy_ = esp_eth_phy_new_ip101(&phy_config);
       break;
     }
     case ETHERNET_TYPE_JL1101: {
-      phy = esp_eth_phy_new_jl1101(&phy_config);
+      this->phy_ = esp_eth_phy_new_jl1101(&phy_config);
       break;
     }
     case ETHERNET_TYPE_KSZ8081: {
-      phy = esp_eth_phy_new_ksz8081(&phy_config);
+      this->phy_ = esp_eth_phy_new_ksz8081(&phy_config);
       break;
     }
     default: {
@@ -84,7 +85,7 @@ void EthernetComponent::setup() {
     }
   }
 
-  esp_eth_config_t eth_config = ETH_DEFAULT_CONFIG(mac, phy);
+  esp_eth_config_t eth_config = ETH_DEFAULT_CONFIG(mac, this->phy_);
   this->eth_handle_ = nullptr;
   err = esp_eth_driver_install(&eth_config, &this->eth_handle_);
   ESPHL_ERROR_CHECK(err, "ETH driver install error");
@@ -356,6 +357,21 @@ std::string EthernetComponent::get_use_address() const {
 
 void EthernetComponent::set_use_address(const std::string &use_address) { this->use_address_ = use_address; }
 
+bool EthernetComponent::powerdown() {
+  ESP_LOGI(TAG, "Powering down ethernet PHY");
+  if (this->phy_ == nullptr) {
+    ESP_LOGE(TAG, "Ethernet PHY not assigned");
+    return false;
+  }
+  this->connected_ = false;
+  this->started_ = false;
+  if (this->phy_->pwrctl(this->phy_, false) != ESP_OK) {
+    ESP_LOGE(TAG, "Error powering down ethernet PHY");
+    return false;
+  }
+  return true;
+}
+
 }  // namespace ethernet
 }  // namespace esphome
 
diff --git a/esphome/components/ethernet/ethernet_component.h b/esphome/components/ethernet/ethernet_component.h
index 0d9ebf29a8..918e47212f 100644
--- a/esphome/components/ethernet/ethernet_component.h
+++ b/esphome/components/ethernet/ethernet_component.h
@@ -45,6 +45,7 @@ class EthernetComponent : public Component {
   void dump_config() override;
   float get_setup_priority() const override;
   bool can_proceed() override;
+  void on_shutdown() override { powerdown(); }
   bool is_connected();
 
   void set_phy_addr(uint8_t phy_addr);
@@ -58,6 +59,7 @@ class EthernetComponent : public Component {
   network::IPAddress get_ip_address();
   std::string get_use_address() const;
   void set_use_address(const std::string &use_address);
+  bool powerdown();
 
  protected:
   static void eth_event_handler(void *arg, esp_event_base_t event_base, int32_t event_id, void *event_data);
@@ -82,6 +84,7 @@ class EthernetComponent : public Component {
   uint32_t connect_begin_;
   esp_netif_t *eth_netif_{nullptr};
   esp_eth_handle_t eth_handle_;
+  esp_eth_phy_t *phy_{nullptr};
 };
 
 // NOLINTNEXTLINE(cppcoreguidelines-avoid-non-const-global-variables)
diff --git a/esphome/const.py b/esphome/const.py
index d35d9d39d5..739019155f 100644
--- a/esphome/const.py
+++ b/esphome/const.py
@@ -1,6 +1,6 @@
 """Constants used by esphome."""
 
-__version__ = "2023.4.0b3"
+__version__ = "2023.4.0b4"
 
 ALLOWED_NAME_CHARS = "abcdefghijklmnopqrstuvwxyz0123456789-_"
 
diff --git a/platformio.ini b/platformio.ini
index 3df6446ff1..c8db90bacb 100644
--- a/platformio.ini
+++ b/platformio.ini
@@ -103,7 +103,7 @@ extra_scripts = post:esphome/components/esp8266/post_build.py.script
 ; This are common settings for the ESP32 (all variants) using Arduino.
 [common:esp32-arduino]
 extends = common:arduino
-platform = platformio/espressif32 @ 5.2.0
+platform = platformio/espressif32 @ 5.3.0
 platform_packages =
     platformio/framework-arduinoespressif32 @ ~3.20005.0