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We need to see a bit of the shadows, so nudge it down using the Move tool as seen in the below image. Use Gaussian Blur filter with 10px radius to blur the shadows.
We just need shadows for the downside part, so we'll need to erase unwanted shadows using Eraser tool like shown in the below image. And that's it, we are done!
Download the PSD
Piece of Arctic.zip | 14 MB