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Mostly you've just got little bits of dithering that looks really random. Try to find a repeating pattern that matches the line you're dithering along. This little image might be helfpul:
The only other thing is that the eyes look kinda funny with the way they touch the grey dither, and the grey line that goes right under the black one gives an ugly banding effect. Try removing the leftmost pixel or two from each horizontal line of grey there. Good luck with the improvements!
Really cool, i like it a lot!!