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General Information
This chapter (verse 2) contains a prophecy explaining that the Messiah (Jesus) was to be born in Bethlehem. This meaning is made clear in Matthew 2:1 & 6, Luke 2:4, John 7:42.
But you, Bethlehem Ephrathah
Yahweh speaks to the people of Judah, and especially to the people of Bethlehem, as if he were speaking to the town of Bethlehem itself.
Ephrathah
"to be fruitful".
even though you are small among the clans of Judah, out of you one will come
"even though other clans in Judah have more people in them, it is one of your people who will come"
will come to me
Here "me" refers to Yahweh.
whose beginning is from ancient times, from everlasting
This refers to the ruler descending from the ancient family of King David.