If your IP is banned, the connection is normally closed before you have the chance to log in, or the connection will just be dropped by the server without notifying you. If you have the possibility to enter a username and password, it is either the password checking algorithm that is rejecting the connection (either wrong username, wrong password or disabled account), or there is a misconfiguration at the server side.
I would contact your hosting provider. Normally they can reboot the dedicated server in single usermode and log in from the console where they bypass the SSH server and password checking. They may be able to reset the password for you in this way.
I figured this (with some help from Godaddy). I was using incorrect username to log in. I think the user/pass that I tried ware correct but they didn't have SSH access enabled, so if pasword for this username was wrong it sais "wrong pass" but when user/pass was correct is sais "connection closed by remote host". // Then I logged in normally with the correct username that had SSH access enabled and it worked fine.