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I dont think you are a million miles away - you just need to tone it down a bit and add the radial gradient to get closer to your original (great first try BTW!).

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All I did here was to place 2 layers below yours - the bottom one had your base blue colour. I then turned down the opacity on your top layer until you get the softness you want (I could probably have gone a bit further).

Then on the middle layer select the gradient tool - create a new gradient with you base blue on the right and white on the left. Choose radial gradient from the options and draw a gradient centered on the intersection. Again you can use opacity on this layer to soften the effect.

One of many ways to do this!

Cheers

John