I think this would  look much better without the dithering at some places. It doesn't give a very sharp look to the blade.

Nice attention to details here. The contrast between dark and light colors is pretty good too. Be careful of banding though, because there's a lot of it here. Banding tends to reduce the apparent resolution of pixel art and makes it more obvious that it's made with pixels. It's when you have multiple bands of colors side by side, each the same length.