Hi Karina,
yes the Hierarchy component allows to display an image as with a List component. Check if in the Properties View of the attribute, that refer to the image, is set the "Content Type": in the Domain Model, select the attribute present in the Entity -> move to the Properties View -> choose the "image" value in the "Content Type" property.
Also you can verify that works, if you download the Acme project from the WebRatio Add-ons and you create a page with a Hierarchy component based on the Category entity and with sublevel related to the Product entity (for the sublevel display the "photo" attribute), and you can see that the component shows the images.
Best regards