Can you route from the source to the tunnel destination and are there any
firewalls that would block the GRE protocol?
Can the destination route back to the source loopback1?
All not relevant, unless "tunnel keepalive" is active.
Normally, the tunnel is down if either source or destination IP are not
set (like "loopback1 has no IP") or if there is no route to the destination
IP address.
Yes - or -imho- if the platform does not support it like a GSR
without a tunnel server card.
-Sascha
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