It's alright, and better than what I can do, but let me point out what I think is wrong with it...

- Hotaru looks like that host from "World's Wildest Police Videos"...
- The costume looks more like an outline than actual plates of armor...
- It doesn't look like there's too much shading on Hotaru, which makes him look flat...
- It looks like you forgot Hotaru's little flag thingies...
- Ermac looks a little "square"-ish (mainly his abdomen...)
- Ermac's right arm (our left) looks small, skinny, flat, and short...
- The names on the lifebar look misplaced. They should be more to the outer edges...
- There's no timer, but that's not mandatory...
- It would be cooler if there were souls swirling around Ermac, instead of just a green mist. You don't even need the souls, it could just be green smoke swirling around him...
- Next time, it would be nice if there was some action going on...

Well, that's my review. I'm not going to give it a 1-10 rating though, since it was only your second attempt at sprite editing...

2nd time......not bad, editing sprites is HARD as hell (i just started yesterday with all this faking stuff, so i know is hard)
Next time try to shade the sprites using several different shades of the same color, that will give them a more convincing shading (zoom in a normal sprite to see what im talking about)

I agree with everything you said. I also can tell that you used Liu Kang's sprite for Hotaru which pretty much ruins him. Ermac is done a little better but as far as I can tell he only has 2 different shades of Red on him and it really does make him look kinda flat but the background is pretty good. Overall it is a pretty good fake for your second time editing. I too will not rate it.

I... can't say anything nice.
3/10 since its your 2nd time...

Shade alot more (you can use lighter colors) and give it a clothing feel to them. And metal for Hotaru's instance.