Bitcoin is holding up quite well, even around the $120,000 mark, which keeps the chances of further growth alive, with a move toward $126,000 possible in the coming days. Ether is also aiming to update its all-time high above $4,800.

Meanwhile, the DeFi Education Fund and Andreessen Horowitz have proposed a safe harbor for a range of applications, as the US Securities and Exchange Commission (SEC) shifts toward a new approach to regulating digital assets.

In a letter sent Wednesday to SEC Commissioner Hester Peirce, the venture firm and the DeFi advocacy group called for the creation of a safe harbor that could clarify broker-dealer rules for blockchain applications such as Uniswap, Coinbase Wallet, and OpenSea. "A safe harbor would provide much-needed regulatory clarity, preserve the Commission's authority over high-risk activity, and allow developers to build in the United States without fear of misapplication of legal categories ill-suited to modern software infrastructure," the letter stated.

The call for reform comes amid notable regulatory changes under the Trump administration. Over the past year, the agency has formed a new cryptocurrency task force to steer the SEC toward a sensible regulatory path, ended investigations into several crypto companies, and launched a new initiative called "Project Crypto" to update rules relating to digital assets.

The letter notes that, to qualify for the proposed safe harbor and be excluded from the SEC's broker-dealer regulatory regime, applications must not exercise control, give recommendations, or act with discretion, and that underlying protocols should be decentralized. "These conditions are based on the understanding that most applications are, in essence, non-custodial, passive software tools that allow users to directly engage with public, decentralized network and protocol infrastructure," the letter said. "Developers deserve clarity, and by presenting this proposal, we hope to provide interface developers with guidelines that will allow them to build without fear of being subjected to unwarranted requirements that do not align with the realities of the technology," the statement concluded.

Trading recommendations

Bitcoin

Buyers are currently targeting a return to $120,700, which opens a direct path to $122,350, and from there, it's a short step to $124,200. The ultimate target is the $125,200 high, the breakout of which would signal a strengthening bull market. In case of a decline, buyers are expected at $118,800. A drop below this level could quickly send BTC toward $117,500, with $115,600 as the furthest downside target.

Ethereum

A clear consolidation above $4,700 paves the way toward $4,898. The ultimate upside target is the $5,055 high, the breakout of which would indicate renewed buyer interest. In case of a decline, buyers are expected at $4,532. A move below this level could quickly push ETH toward $4,363, with $4,216 as the furthest downside target.

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.