Ethernet doesn't have valid IP configuration

Alright so lately i’ve been having this error on PC. It tells me I have an invalid IP configuration. I am using an Ethernet cable wired directly into the modem. I have tried plugging the Ethernet cable into my laptop and it works no problem. I have also tried connecting using WIFI on the computer that is having this issue and it won’t let WIFI connect either. It is giving me a 169.254 error message. Is there any way to get this fixed? I bought a brand news windows 8.1 disc and factory reset the computer thinking it was a virus and that didn’t help. I have also tried the commands ipconfig /release and /renew and they don’t do anything. Any help would be appreciated.

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Last week, I got this error and by changing dynamic IP to static IP settings, everything is back to work normally.