ssh_exchange_identification: Connection closed by remote host - Password less authentication setup

ssh_exchange_identification: Connection closed by remote host - Password less authentication setup 

Situation:
While setup passwordless authentication from testserver2 (192.181.166.55) to testserver1 (192.181.130.55)  server, getting  error "ssh_exchange_identification: Connection closed by remote host"

[kanachim@testserver2 .ssh]$ ssh -vv testserver1
OpenSSH_5.3p1-hpn13v7, OpenSSL 0.9.8e-fips-rhel5 01 Jul 2008
debug1: Reading configuration data /etc/ssh/ssh_config
debug1: Applying options for *
debug2: ssh_connect: needpriv 0
debug1: Connecting to 192.181.166.55 [192.181.166.55] port 22.
debug1: Connection established.
debug2: key_type_from_name: unknown key type '-----BEGIN'
debug2: key_type_from_name: unknown key type '-----END'
debug1: identity file /home/kanachim/.ssh/id_rsa type 1
debug1: identity file /home/kanachim/.ssh/id_dsa type -1
ssh_exchange_identification: Connection closed by remote host

Solution:
Check /etc/hosts.deny on server testserver1

root@host testserver1# grep sshd /etc/hosts.deny 
# DenyHosts: Mon Dec 18 22:10:38 2017 | sshd: 192.181.166.55
sshd: 192.181.166.55

Remove the sshd entry from hosts.deny on testserver1

Login to testserver2 Switch to user kanachim & create new key

-bash-3.2$ ssh-keygen
Generating public/private rsa key pair.
Enter file in which to save the key (/home/kanachim/.ssh/id_rsa):
Enter passphrase (empty for no passphrase):
Enter same passphrase again:
Your identification has been saved in /home/kanachim/.ssh/id_rsa.
Your public key has been saved in/home/kanachim/.ssh/id_rsa.pub.
The key fingerprint is:
37:6a:69:c1:a4:01:4b:c5:34:be:32:42:90:0b:20:a0 kanachim@192.181.166.55
The key's randomart image is:
+--[ RSA 2048]----+
|B.  o++          |
|=. . +..         |
|E.. . o .        |
|..     *         |
|  . o o S o      |
|   . o   = .     |
|        =        |
|       o         |
|                 |
+-----------------+
-bash-3.2$
-bash-3.2$ ssh-copy-id kanachim@192.181.130.55
Password:
Now try logging into the machine, with "ssh 'kanachim@192.181.130.55'", and check in:
  .ssh/authorized_keys
to make sure we haven't added extra keys that you weren't expecting.

Now login from testserver2 to testserver1

-bash-3.2$ ssh 192.181.130.55
Last login: Thu Feb 27 00:30:38 2014 from 10.217.230.145
-bash-3.2$ hostname
testserver1