Zelensky says he is calling off the planned Spring Offensive because of a lack of ammunition. While he didn't explain which actual offensive he was referring to, reportedly Ukraine has assembled a force of as many as 80,000 soldiers plus around 300 tanks to try and rescue Bakhmut.
It has been known for some time that Zelensky's focus on Bakhmut is not what NATO (meaning the US) wants to happen. Zelensky has been told to give up Bakhmut, cut his losses, and focus on a big late Spring offensive on Crimea.
It is possible that Zelensky is holding off on the Bakhmut rescue and his claim about ammunition shortages is an excuse to not push forward.
Equally it is possible Zelensky is trying to fool the Russians and plans to attack in the Bakhmut direction.
The Russians have moved out to take control of the roadway from Bakhmut to Chasiv Yar, a key defense line for the Ukrainians. This happened in the last couple of days and the Ukrainians have laid down a massive artillery barrage to try and stop the Russians from taking the road and advancing on Chasiv Yar. However, there is, so far at least, no sign of a massive counterpush by Ukraine with armor or infantry. The battle along this roadway may tell us whether the Ukrainians are going to launch their offensive towards Bakhmut or pull back to better defensible positions.
Inside Bakhmut the fighting continues with Russian forces now in the center of the city. The Ukrainian forces appear to be trying to consolidate in the western part of the city, but whether they can do so depends on how the fighting goes, as part of their force is in the northeast of the city and would have to move to the western side, not an easy task.
Numbers vary a lot on how many Ukrainian troops remain inside Bakhmut. There seems to be a consensus of around 10,000 to 15,000, with the focus on the lower number if casualties are accounted for in the estimates.
Of course if you believe propaganda allegedly originating from British intelligence you would think the Russians are losing and that Wagner forces will withdraw and redeploy to Africa. This sort of nonsense contributes nothing to understanding factually what is going on in Ukraine and is a disservice to concerned citizens. (See for example this story in Breitbart. )
There is some fighting elsewhere, but nothing remarkable at the moment.
If Bakhmut falls it is bound to have a very big psychological impact on Ukraine. Moreover, the fall of Bakhmut will look like a useless sacrifice and blame will almost certainly be on Zelensky.
Ukraine is insisting that the fighting in Bakhmut is stabilizing, although most other reports continue to stress Russian Wagner force advances.
If Ukraine does call off any offensive to relieve Bakhmut, then the US/NATO plan for an attack on Crimea remains credible. However, the risk of a very large scale Russian encirclement of Ukraine's forces could force a change of plans.