Blisters can be part of many rashes. Insect bites can potentially result in blisters. Other rashes that have blisters include:
Contact dermatitis, which is an allergic reaction to something applied to the skin.
Herpes infection, either a cold sore (Herpes simplex) or shingles. Most of the time shingles occupies a larger area than a cold sore, but that is not a hard and fast rule. Both of these should be treated with an antiviral medication. This is particularly true if the tip of the nose also has blisters. In that case, you must see an eye doctor (ophthalmologist) as soon as possible to make sure there is no viral infection of your eye.
Impetigo, a bacterial infection, usually caused by Staph aureus. This infection is highly contagious and needs to be treated with antibiotics.
And there are many others. I recommend a consultation with a dermatologist as soon as possible to determine the cause of your rash.
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It can be due to insect bites or contact dermatitis. If they are painful then it can be due to herpes sores. Do not use any cosmetic products at the sites. You can apply some calamine lotion at the rash as it will help in soothing the skin. For mild-moderate symptoms a weak steroid may be used, whilst more severe cases require a higher-potency steroid which is available under prescription.
For the itching take some antihistaminic like Benadryl. If the symptoms persist then get an evaluation done from a dermatologist.
It is very difficult to precisely confirm a diagnosis without examination and investigations and the answer is based on the medical information provided. For exact diagnosis, you are requested to consult your doctor. I sincerely hope that helps. Take care and please do keep me posted on how you are doing.