Chasiv Yar sits on a hill that offers a natural barrier, helping Kyiv to hold crucial supply lines to the north, as well as the regional capital of Kramatorsk.
Moscow is believed to have ordered its commanders in the area to capture the town by May 9, when the country celebrates Victory Day.
Analysts believe Russian forces are exploiting the window before US military supplies arrive in the hands of the Ukrainians defending the hilltop settlement.
It has become increasingly difficult for Ukrainian forces to hold on because of the significant advantages in artillery fire and aerial dominance enjoyed by the Russians.