Well, it seems only a password problem. Do you happen to have updated some control panel password or anything else? Some Control Panels will apply changes to the password to multiple services (very unsafe, but that's how it's one in some popular server management software).
Either that, or your account was restricted for some reason. I saw this happening in a client's website when they had gone out of their allotted DB quota.
But first thing, double check the pass in config.php; sometimes admins can overwrite a file not knowing it had been updated.
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