Added in a swan paddling by to add depth. Pinned sprite and flipped for reflection and gave the swan the bullet behavior and ripple effect to match the water.
Notice how the player and swan images are on top of the water and background is behind.
Some other effects to try: Make the water an oil painting so lines are not so sharp and change the brightness setting so it is somewhat darker than the sky and that looks more like water.
This could also be a good effect for a ship on the ocean.