What do you mean that you could connect to internet through ethernet? If you did that, you actually connected to a server (another computer in your LAN), which has Internet Connection Sharing. If you did it, then you already know how to network (such a general term, isn't it?!). But if you used dial up, then I don't think we can call it Ethernet any more.
In general you have to connect to PCs by means of a wire or wireless devices. Then set an IP for both PCs that have the same range, something like 192.168.0.1/24 (i.e. the subnet of 255.255.255.0) for your first PC and 192.168.0.2/24 for the next. And then you should restart the network service in both your linux machines. And if you can ping each other, then you're done!
If you want specific details on setting IP, you should tell us what distro you're using. But I think a normal googling will give you more/quicker answers and I don't call it wandering around.
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