A cap sensor (touch or proximity) can definitely be used to detect water level. Since you only need a limited set of discrete levels, you can do this very well using a cap sensor device like the MPR121 or using Freescale Touch Sensing Software with a MCU.
Here's an example showing a simple implementation of the discrete method with one of our older devices, but it has some good images to show you how it was done: http://cache.freescale.com/files/sensors/doc/ref_manual/APPEFIELDRM.pdf
Jump down to page 10 and take a look at the picture to see.
If you want to try it out, I would recommend the MPR121 eval kit: Freescale Sensor Toolbox MPR121 Evaluation Ki|Freescale
You can then mock up a system with metal contacts around the container and wire them directly to the eval board. The provided GUI will allow you to see the signal on the screen so you can determine if the setup will have enough signal to differentiate when the fluid passes the level that you want to detect.