So, a few stray thoughts.
Hmm a cruel lady of the lake.
Reminds me on that odd documentary the discovery channel did on mermaids.
Kinda a water bending illusion, especially with the blood, I wonder if there could be a water tribe that learned to breath water or be nomadic like dolphins in the Discovery channel thing.
The red mist might be a reference to Ariel, and how datk the orginal little mermaid was.
Over all the merperson is well rendered, and considering they seem to be modeled in part on an Angler fish, especially with the attena rendering the face, I could understand how they would develop breasts as attraction method for their prey.
The unknown horror of the deep sea is something that still sits with me from my childhood, and I think it was simply the fear of the Unknowable that left that impression in my mind.
You've done well to render that, and created something wonderful.
Thank you for making this.