Wrong sprites overlapping

I have 2D game scene with few layers.

Camera, Z = 0

  1. sky, Z = 4
  2. mountains, Z = 3

But after moving mountains to one of the sides of scene, they become overlapped.
Here is example - Screenshot by Lightshot.

I was trying to solve the problem with changing the Shader (now I am using Sprites/Default) but I am not sure which one is right one and why Deault cannot be used?

Or maybe problem is not is shader but in other part of configuration?

I believe when using sprites the z-value is meaningless on the render-side. Instead you want to use the sprite renderer’s sorting layer more info can be found here.