I've been doing what I do, full time, since 1994, after doing it a few years from home while working a full time job.
I don't think there are many sellers who make a living off just off Etsy.
But if you mean hanging up a shingle and being your own boss that's not "the next level" but many levels up. After starting the next level is testing your product with customers and being honest with the results - Is it what they want? Is it the quality they want? Is there room in the market? In reality this should be done before you start.
Carefully calculate the cost of your product, including all indirect costs then look at your cost of living. Calculate how much you'd have to sell to live and the time it would take. You might find out that it isn't practical.
From there you set a realistic first sales goal. If you hit it you may be on your way. If you miss it by a mile you have to reassess your product, marketing and audience.
You'll need to learn about customer service. The hardest thing to learn is to not react/act emotionally when things go wrong. And believe me things will go to go wrong.
Then there's the things you have no control over - 9/11 nearly crushed me – what do people need what I sell when they think the world might end? Depressions, recessions, changes in the currency exchange.
Before you leap, ask yourself if being self employed is what you really want. Yes, there is the freedom of being at the helm, but that means you're responsible for EVERYTHING. Sleepless nights, long days, frustration, making ends meet and an unbelievable amount of hard work.