Most systems are "overflow based" because the overflow from the tank always exactly matches the output of the pump, which is at the level of the sump.
Your system is not overflow based so the water going into the sump and/or tank does not match the outflow - this mismatch is causing the oscillations you are seeing.
My suggestion is to view the sump as the "tank" and the tank as the "sump." By that I mean, change the output from the sump to an overflow. More specifically, place the output connection from the sump at the level that you want the water level to be. If you have already drilled a hole near the bottom of the sump, you could easily add a stand pipe to raise the level of the sump water level to where you want it.
Good luck.
Your system is not overflow based so the water going into the sump and/or tank does not match the outflow - this mismatch is causing the oscillations you are seeing.
My suggestion is to view the sump as the "tank" and the tank as the "sump." By that I mean, change the output from the sump to an overflow. More specifically, place the output connection from the sump at the level that you want the water level to be. If you have already drilled a hole near the bottom of the sump, you could easily add a stand pipe to raise the level of the sump water level to where you want it.
Good luck.