Benghazi -- Libya's second largest city located in the east -- appears to be under opposition control. Rsidents are reportedly being given weapons looted from security forces, and they say they're sending weapons and manpower to Tripoli to help protesters there fight Gadhafi's mercenaries.
"There is no civil war. This is revolution," a man in eastern Libya told ABC News.
In King Idris Square in Tobruk -- located in northeast Libya -- around 1,500 very energized protesters were demonstrating and celebrating today, chanting, holding up peace signs, some even firing pistols from cars.
The all-green Libyan flag was replaced by the red, black and green flag of the pre-Gadhafi monarchy, and was being waved from honking cars, carried through the crowds and painted on children's faces.
The accusations leveled at Gadhafi and the calls for him to leave were passionate but familiar. Residents complained that they had no voice, jobs, proper education, health care and a murderous regime. But what is unique to Libya -- and repeated by almost everyone ABC News spoke with -- was they feel there's no reason Libyans should be so poor given the country's vast oil wealth. Many said they would fight until Gadhafi left and were willing to die for the cause.
"We are all Libyans, we are one team," said a lawyer wearing his black robes. "There's no division between us, all one team. And we will fight as one team until we die or he's out."
Tripoli, however, is a different story. Residents say the nation's capital is still under siege by Gadhafi's forces. One reporter said people were going about their daily lives but there was an ongoing sense of fear after the crackdown killed hundreds in recent days.
An American-educated engineer who lives in suburban Tripoli told ABC News he was anxious and that the streets are very dangerous. He said four of his neighbors were killed. He added that Tuesday was the worst day so far, with guns and planes and helicopters, and cars without license plates roving the streets and shooting at any protesters who assembled.
Gadhafi appears to be losing momentum among his own government. Libya's ambassador to Jordan today became the latest in the long line of international diplomats to resign and condemn the violence against people. Meanwhile, Ahmed Gadhaf al-Dam, one of Gadhafi's closest aides and also a cousin, said he has defected to Egypt in protest of the deadly crackdown.
Obama said the United States is preparing a full range of options to respond to the crisis, including no-fly zones to prevent attacks and proposals for oil companies to stop operations in the world's 12th-largest oil exporter.
But NATO today said it had no plans of intervening in Libya, saying that would require a United Nations mandate.
"I cannot consider the situation in Libya a direct threat to NATO or NATO Allies, but, of course, there may be negative repercussions," NATO Secretary General Anders Fogh Rasmussen said in a statement. "Such upheaval may have a negative impact on migration, refugees, etc., and that also goes for neighbouring countries."
A no fly zone -- which Libyans are requesting to stop Gadhafi's aerial attacks -- would have to have the approval of NATO at the very least. Libya currently remains a member in good standing of the U.N. Human Rights Council.
Thousands of foreigners, including hundreds of Americans, are being evacuated from Libya.