Is there a limitation how deep the nesting of base and extension packages (managed ones) is in Salesforce?
So can Package EEB extend Package EB extend Package B?
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There is no documented limit on the recursion depth possible, but there are other limits that apply to this question.
Execution Time: The entire time for a transaction is 10,000ms; this time is shared. Multiple packages are likely to reach this limit sooner.
Referenced Namespaces: You can reference at most 10 namespaces in a single transaction. Assuming each package in a chain were all dependent upon the same object, the maximum recursion depth may well be 10.
DML Operations: There is a limit on the number of records you can process per transaction; this may affect the maximum number of commands you can chain.