This water and clouds suits the rest of the image a lot better, IMO. Very nice progress!!

I still think it looks a tad too cartooney, though! It's not a bad thing at all if you were aiming for a cuter kind of look.
But I believe you're trying to convey actual death and menace, maybe related to the toxicity (metaphoric or not) of cities.
Maybe the skull needs to be less expressive and fleshy? I did a quick edit to illustrate:
