Looking at your picture it looks ok. I keep the water level in my wet/dry about 3" above my pump. You want to make sure if there is a power outage that your sump will not overflow. I would turn off the power and see how high the water goes in the sump and adjust from there. I hope that will help you. The daily evaporation is why you want to keep the water level above your pump. You never want the pump to start sucking air.