To get the blur effect, use filter: blur() (with provider prefixes). Blur applies only to the element itself, and not to anything below it, so you will need to refer to the image in the "blur field" as well as in the background, and use background-position to control the offset so that the line is correct.
.blur { background-image: url('http://placekitten.com/400/400'); background-position: center -100px; -webkit-filter: blur(10px); -moz-filter: blur(10px); -o-filter: blur(10px); -ms-filter: blur(10px); filter: blur(10px); filter: blur(10px); }
JSFiddle Demo
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