Defiantly ich, not velvet. Fish with velvet don't eat or act normally. I assume this fish isn't in a QT/HT. All fish this fish has been exposed to also need treatment. Treating ich in a DT is very difficult; in a reef, its impossible. FWIW; I don't think this fish has much time before he starts downhilll fast, the parasites in his gills must be awful. You need to get your fish in a suitable treatment tank ASAP.