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Based on what you have posted, the skin condition appears to be localized in the penile head. As this is relevant to your case, may I ask if you are circumcised?
Balanitis may be a primary differential here. Balanitis is a condition that is caused by several factors like bacteria, fungi or even secondary to traumatic causes or mechanical injury. I suggest that you have this assessed by your primary physician. A fungal or bacterial infection may be contagious.
A dermatitis is also a possible differential in your case. This will usually present with a rash and itchiness.
Washing the area with a mild and bland soap as well as keeping the area clean and dry at all times will be able to help.
At this point, a differential of dermatitis or fungal infection are still primary considerations based on what you have posted. An irritant balanitides is a primary differential
Here are some points to consider for this irritant form of balanitis:
Irritant / allergic balanitides
Diagnosis
•Typical appearance: very variable. Appearances range from mild
erythema to widespread oedema of the penis.
•History: symptoms have been associated with a history of atopy or
more frequent genital washing with soap. In a very small number of
cases a history of a precipitant may be obtained.
•Patch tests: useful in the small minority in whom true allergy is
suspected.
•Biopsy: may show non-specific inflammation.
Source:http://www.bashh.org/guidelines/2002/balanitis_0901b.pdf
Erythema refers to redness and oedema refers to swelling. Atopy mentioned above refers to previous history of allergies, asthma and allergic rhinitis. In your case, you mentioned of a previous history of eczema.
Your physician may be able to diagnose this after a complete physical examination. In some cases, a microscopic evaluation of a skin scraping to differentiate this rash from a fungal infection may be done.
Just keep the area dry and clean. Do not wear tight underpants .Wear underpants of light and cool material.
Here is a suggested article for your case:
http://www.cirp.org/library/disease/balanitis/edwards1/