While Bitcoin is hitting new all-time highs and Ethereum is also heading for its own highs, the European regulator is preparing to tighten oversight of the crypto sector. All of this is part of the broader EU financial regulatory reform.

To overcome regulatory fragmentation and improve supervisory efficiency for large companies operating across multiple countries, the European authorities plan to shift some powers from the national level to a pan-European one. The goal is to increase transparency, reduce risks, and enhance investor protection in the digital asset space.

A key element of the upcoming changes will be stricter requirements for companies providing cryptocurrency-related services. This includes exchanges, custodial services, and digital asset issuers. The regulator intends to introduce clear licensing and supervisory frameworks, similar to those already in place for traditional financial institutions. The reform will also cover anti-money laundering (AML) and counter-terrorism financing (CTF) measures. Crypto companies will be required to implement more rigorous client identification and transaction monitoring procedures — a response to concerns over the use of digital assets for illicit purposes.

In addition, European officials are increasingly concerned about the potential risks to financial stability posed by the rapid growth of the crypto market. As a result, they plan to develop oversight mechanisms for systemically important players in the sector.

Although tighter regulation could pose challenges for crypto business development, many market participants welcome the European regulator's initiative. They argue that clear rules are necessary but should be introduced gradually. This approach could attract more institutional investors and improve overall trust in digital assets.

Ultimately, the reform aims to foster a more resilient and secure crypto market in Europe — not to stifle or destroy it.

Trading recommendations

Bitcoin technical outlook

Buyers are currently targeting a return to the $125,500 level, which would open the way toward $127,700, and from there it's a short climb to $130,200. The furthest target lies around $131,400 — a breakout above this level would signal further strengthening of the bull market.

In case of a pullback, buyers are expected around the $123,000 level. A drop below this area could quickly push BTC down toward $120,900, with the final downside target being $119,100.

Ethereum technical outlook

A confirmed breakout above $4,616 opens the road to $4,697. The furthest target lies around $4,784, and a move above this level would indicate renewed bullish momentum and growing buyer interest.

If ETH declines, support is expected near $4,533. A fall below this level could quickly bring Ethereum down to $4,432, with the furthest downside target at $4,331.

What's on the chart

• The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.