Can't go over 2,900 RPMS or goes into neutral
 

I have a 2005 Honda Element with a 5-speed standard transmission. I cannot go over $2,900 RPMs or it feels like it's in neutral and goes nowhere. I have to short shift to be able to drive it right now but do not want to cause any more damage. Has anybody else experienced this issue or know what it may be

welcome to the forum. possible vtec oil pressure switch bad.

True
 

Could be but for a few dollars more you could replace unit. If you cant do that one well 2 things you could do first is check your oil level and quality, second (this one is a little more hands on) you can remove the solenoid / pressure switch unit and check the seal and screen. The screen should look clean. Hope this helps ya out

Get someone to professionally read DTC with a higher level OBD II scanner
You don't want to be replacing parts that won't fix your issue