so after my last attempt at trying new things on leather I tried a more intricate design. They call this the organic art. I think it would look cool on a sheath. Still would like to get more definition and depth. still debating on the color.
If you water down the dye and wipe it off quickly it will highlight the lower areas and kind of act as the shadows of the overlapping parts.
You can also use Roselene as a resist in areas you do not want to get as dark. It does not work well with dyes unless airbrushing but works very well with antiquing gels
The steps in the tooling often happen when leather is not dried enough. ideally after wetting the leather should return to its natural color and be cool to the touch. Other than that you are on the right track. also check out https://www.facebook.com/groups/601613716590057/ for some excellent examples and many people to help guide you along