probably dried out, they do like plenty of water..

Yep, as steve above says, probably drought killed the topgrowth, then it recovered is now shooting from the roots. You can either keep it as a shrub by cutting it down every Spring, or select the lead shoot and cut back all the rest to encourage it to form a single stem and become a tree.

I agree with Stevebuk.
Looks like it will make it.
But I hope you don't mind me saying that they can get very, very, very big, and if near to a building can cause a lot of problems because of the roots, so beware, had to chop ours down at the bottom of our gareden as it was moving the foundashions of our neighbours brick built workshop. Eeeeek! :o((((((

one big problem with eucalyptus is they are a very large trees as already mentioned, but they are also shallow rooted so can become unstable in strong winds..