Tons better with this update, but I'd personally like to see some in-game examples of the warpaint before I can make a final call on it. If you also had a base warpaint you used for this, then I would like to see a GameBanana or Mods.tf version of this so we can see how it looks on certain items.

You can say it looks like the bottom of the pool or coral in the sea.

Definitely needs improvement, though as it is its not bad

glob

Thanks chief

You know what this reminds me of? It reminds me of the background from the Once in a Lifetime music video by the Talking Heads.
That being said, I'm glad you were inspired enough to try and make a warpaint for the first time, but it does show that you just got started. I'd suggest thinking about your theme and going back to it and hammering out something different from this.
One big note: The smaller the detail, the more likely it will be lost in lower qualities. If you can make a warpaint that maintains its form even with different wears and graphics settings, while also not being obnoxiously over-saturated or ugly, then you've got yourself a winner.
Take another crack at this.