Dungeon 2, known as 'The Moon' for its crescent-like shape, is located in the western part of the Overworld. To reach it, head west from the starting cave until you reach the western edge of the map. Then, head north two screens. You'll find the entrance hidden beneath a bush. To reveal the entrance, you'll need to burn the bush with your Blue Candle. Stand in front of the bush and use the Blue Candle to make the entrance appear.
This dungeon introduces new enemies like Darknuts, who are heavily armored and can only be damaged from behind, and Wallmasters, which can grab Link and return him to the dungeon entrance. Be prepared for more complex room layouts and a greater reliance on your acquired items. Ensure you have enough Rupees for potential purchases and a good understanding of your Blue Candle's use.