That's probably the 'Depth of Field' effect. Try turning that off in the advanced graphics options if you don't care for that effect.
If you'd like options between "yes" and "off" you can also fine tune the effect with the /dofweight slash command. IIRC it accepts values between 0.0 and 2.0, with 1.0 being the default.
See how it's blurry over far away stuff, but on close stuff, it kind of makes the exact shape of whatever is closer sharper? Like, it is sharper in the exact shape of that tree, and over my head and ears. Looks weirder in motion. Just wondering if it's supposed to do that or if it's some graphical glitch on either my graphics card or in the game itself.
Shadowblaze - Lvl 50 Dark/Thermal Cor, Alexander Kalsoa - Lvl 50 BS/Regen Scrapper, and a whole bunch of other Alts. Global is @Shadowblaze.