This is great! It really reminds me of the old Battle Chess game. Made me want to play it now.

The animation is very nice and smooth and the idea is great. I do have some suggestions though.
- Try to improve readability. I've made an edit to show how I would do it personally. It may not be better, it may not be what you had in mind, but it demonstrates some of my points.
- The texture on both characters is too noisy and it's hard to see where the light source is. For example, the mage has bright edges on both arms, as if the light is coming from both sides (or behind)
- The animation is great, but if I didn't read your description, I wouldn't have waited for the third floating loop. I would just assume that nothing more happens. Maybe you could do something to keep the viewer interested? After the first loop, the wizard could pull out a wand or something.
- When I made my edit, I made some changes. For example, I don't know what the green and orange dots on the old mage were supposed to be. And I wasn't sure if the floating guy was a mage or a knight. I made him a knight in different colours, to show that he's an enemy.



Anyway, this might not been what you had in mind, so do what you will with it.