The Scots were left licking their wounds after suffering a heavy innings defeat in their Intercontinental Cup clash against their oldest cricketing foes at Clontarf.
The coach admitted his side had been outperformed throughout the four-day encounter but said: "It is bitterly disappointing to lose in the way we did and the batters in particular didn't apply themselves as they wanted.
"It would be easy to rant and rave but sometimes you have to take a step back and take the emotion out of things. At the end of the day they are all still good cricketers but a lot of the guys are low on confidence.
"They will get a two-week break now and it comes at a good time for them to go away and clear their minds."
Outplayed almost from start to finish, the Scots were finally put out of their misery as Ireland took less than 10 overs to clinch victory on the fourth morning of a rain- interrupted clash.
The bulk of the damage had been done on Friday afternoon when Scotland's top order batsmen caved-in against some hostile bowling from Max Sorensen and debutant Craig Young.
Resuming on 143-8, still needing 68 runs to make Ireland bat again, the Saltires had added just five runs when Young found the edge of Iain Wardlaw's bat and Kevin O'Brien took a sharp catch at slip.
Majid Haq, whose 79-run stand with Safyaan Sharif on Friday, helped stave-off total humiliation, was then last out for a dogged 122-ball 37. The Clydesdale player had little option but to hit out but another edge presented South African- born Sorensen with his fifth wicket of the innings as Ireland wrapped-up the win by an innings and 44 runs.
None of Scotland's top six batsmen reached 20 in either innings of the match and Steindl admitted his players never recovered mentally from the agonising last-over loss in the first of two ODIs last weekend.
"There's no doubt losing that game hit us hard and gave Ireland confidence going into the second ODI and the I-Cup game," he said. "You have to bounce back quickly from results like that and it didn't happen for us. Too many guys were struggling for form and confidence and when that happens you tighten up."
"A couple of years ago we were coming out on top in these tight games and we have to get back to winning these ugly games."
Steindl's men must regroup in time for their World T20 qualifying campaign in the UAE in November.