Earth-centered inertial (ECI) coordinate frames have their origins at the center of mass of Earth and are fixed with respect to the stars.
In a nutshell: The extent to which an ECI frame is actually inertial is limited by the non-uniformity of the surrounding gravitational field.
The location of an object in space can be defined in terms of right ascension and declination which are measured from the vernal equinox and the celestial equator.
Nutation is the smaller amplitude shorter-period (< 18.6 years) wobble that is superposed on the precessional motion of the Celestial pole.
It is due to shorter-period fluctuations in the strength of the torque exerted on Earth's equatorial bulge by the sun, moon, and planets.