c. 1500 hyvis "itchy condition of the skin," origin unknown. Some writers connect it with heave because hives erupt out from the skin, but the phonetics of that are difficult to explain.
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Definitions of hives from WordNet
hives (n.)
an itchy skin eruption characterized by weals with pale interiors and well-defined red margins; usually the result of an allergic response to insect bites or food or drugs;