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At the weekend, lava fountains more than 50m (165ft) high prompted the Met Office in Iceland to raise its ash warning for aviation to red, the highest level.
Later, it reduced the alert from red to orange - the next level - saying the eruption was not creating ash.
A massive white cloud some 4.5 kilometers tall was rising above the fissure eruption on Tuesday.
Iceland's meteorological agency said the number of earthquakes in the area fell to 300 on Tuesday, compared to 500 the previous day.
Thousands of small earthquakes have rocked the region in recent days, leading to concerns that Bardarbunga, which lies under a vast glacier, could erupt.