In my opinion, the blade decoration is engraved, not etched.
I am also sure that this kind of tessak (German/Austrian
Dusägge) is no longer of the 2nd half of the 16th century when most of those were made in Styria/Austria. The pommels then were larger, the blade of somewhat different shape, and as Lee has pointed out, the blade decoration comprising sun, moon and stars - though of late Gothic (15th c.) origin - usually shows up on Baroque blades of the 17th and 18th centuries. The style of engraving on this sample, especially the sword arm emerging from a cloud, are characeristic of German/Solingen blades of the late Thirty Years War, ca. 1640's.
It doubtlessly is a very nice and you sure deserve being congratulated on it!
Best,
Michael