from Wiktionary, Creative Commons Attribution/Share-Alike License
Sorry, no etymologies found.
The language was originally named "LiveScript" but was renamed in a co-marketing deal between Netscape and Sun, in exchange for Netscape bundling Sun's Java runtime with their then-dominant browser.
It's also been noted that the name came, almost as a joke, due to the rivalry between LiveScript and Java for client-side scripting.
Well, actually, it has been around a long time; classic ASP, Netscape's LiveScript, and Obtree have been around for 10 years or more.
I can't find any sign of some of the really interesting stuff from days gone by. (e.g. LiveScript - a technology that was before its time and thus under-implemented compared to what it could have been used for.)