Question Shader That Blends Sprites?

I've searched for awhile now but cant find a video, google doesn't seem to understand what I want lol.

I'm fairly inexperienced with shaders, but does anyone know how to make a shader/can find a video on making a shader that merges two sprites together as they get close together?

Edit: apparently unity forums doesn't let you post videos with timestamps lol, it's at 3:18

Something like this, but with 2D sprites? I'm trying to make water particles that merge together when they're close, I tried using masks but I couldn't really figure out how to make the mask not affect the children(AKA only affect other objects, not the one the mask is on). Doesn't need to be as complicated as my man Sebastian's vid there, just a basic merge. My water is made up of a bunch of small circles



This is after I tried shrinking the circle colliders... I know I have more issues than just the merging, but I'll fix it one at a time lol

Thanks