The Rutherford nuclear model describes the atom as having a small, dense nucleus with electrons orbiting it much like planets around the sun. In a hydrogen atom, electrons maintain their orbits due to the electrostatic force of attraction between themselves and the nucleus, which serves as the required centripetal force. This relationship leads to the equations governing the orbit radius and electron velocity, along with how the kinetic and potential energy are calculated. The negative total energy indicates that the electron is bound to the nucleus, with energy levels being quantized, thus leading to the concept of stability in atomic structures.