Sounds like healing: For some rashes, the skin peels as it worsens. If yours was red and inflamed and now is not red and inflamed, then I'd suspect its improving. It is important that the draining liquid is clear, which would be expected. Consider keeping it clean, blot dry after washing and then cover. You could add some petroleum to keep bandage from sticking.
Answered 9/7/2019
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A doctor has provided 1 answer
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