Nice. There needs to be a bit of a water line where the Cthulhu skeleton and the reflection meet to give the sense that it is actually comming out of the water. Also, the arms and torso shouldn't be straight lines but mor ovalshaped for the body with the reflection base wrapping around it. Also remove the black from the reflection and don't make it a direct reflection - put some wave into it. You can do this by just picking entire rows and shifting them left and right. Will give it a bit more of a water effect.
Wow, very snazzy concept! Love the colors too!