This is great! The background/sky could use some work, but I'm sure you were going to get to it. The waterfall doesn't feel right. It's missing that dissolving effect that's gonna make it more fantasy-like. Perhaps you could look at some reference like this: http://c7.alamy.com/comp/A893G8/small-waterfall-in-dentdale-yorkshire-dales-national-park-england-A893G8.jpg