Yup, your tranny is going into limp mode. The hard shifts are from it running up the line preasure so it doesnt slip as much between shifts. Causes less wear and tear when the tranny is failing.
It could be because of many things. It could be a bad sensor, or dirty sensor. I would start out, by taking all the sensors and wiring out, and clean it all up. If that doesnt work, maybe start replacing some sensors. And if that doesnt work, it looks like rebuild time.
If I were you, smell your tranny fluid, and see if it smells burnt. Drop the pan, and at the bottom of the tranny pan there is a magnent, see if any metal has collected around it. When my dads torque converter went (went into limp mode, we drove it that way for a good 5K miles, just unplugging it at night), there was a big donut looking ring of metal around the magnent, a good 3" in diamter, and 3/4" tall, a lot of metal. If you pull the pan and dont find any metal, put in some new ATF, and see if that fixes things. If not, rebuild time.