Method, apparatus, and systems for reliably transferring Ethernet packet data over a link layer and facilitating fabric-to-Ethernet and Ethernet-to-fabric gateway operations at matching wire speed and packet data rate. Ethernet header and payload data is extracted from Ethernet frames received at the gateway and encapsulated in fabric packets to be forwarded to a fabric endpoint hosting an entity to which the Ethernet packet is addressed. The fabric packets are divided into flits, which are bundled in groups to form link packets that are transferred over the fabric at the Link layer using a reliable transmission scheme employing implicit ACKnowledgements. At the endpoint, the fabric packet is regenerated, and the Ethernet packet data is de-encapsulated. The Ethernet frames received from and transmitted to an Ethernet network are encoded using 64b/66b encoding, having an overhead-to-data bit ratio of 1:32. Meanwhile, the link packets have the same ratio, including one overhead bit per flit and a 14-bit CRC plus a 2-bit credit return field or sideband used for credit-based flow control.