Not able to SSH

I am not able to ssh to one of the EC2 host in AWS:

bash-3.2$ ssh -vvvv -i ~/.ssh/id_rsa_APP_GIT 54.12.34.56 -l b123
OpenSSH_6.2p2, OSSLShim 0.9.8r 8 Dec 2011
debug1: Reading configuration data /Users/user1/.ssh/config
debug1: Reading configuration data /etc/ssh_config
debug1: /etc/ssh_config line 20: Applying options for *
debug1: /etc/ssh_config line 102: Applying options for *
debug2: ssh_connect: needpriv 0
debug1: Connecting to 54.12.34.56 [54.12.34.56] port 22.
debug1: Connection established.
debug3: Incorrect RSA1 identifier
debug3: Could not load "/Users/user1/.ssh/id_rsa_APP_GIT" as a RSA1 public key
debug1: identity file /Users/user1/.ssh/id_rsa_APP_GIT type 1
debug1: identity file /Users/user1/.ssh/id_rsa_APP_GIT-cert type -1
debug1: Enabling compatibility mode for protocol 2.0
debug1: Local version string SSH-2.0-OpenSSH_6.2
ssh_exchange_identification: read: Operation timed out

Select all Open in new window

Though I can telnet it:

bash-3.2$ telnet 54.12.34.56 22
Trying 54.12.34.56...
Connected to ec2-54-12-34-56.compute-1.amazonaws.com.
Escape character is '^]'.
^]
telnet> q
Connection closed.

Select all Open in new window

Appreciate if someone can help in suggesting how to troubleshoot it