A noun in The Etymologies of the 1930s glossed “dream” derived from the root ᴹ√OLOS of the same meaning (Ety/LOS, ÓLOS). It replaced a deleted form oll (EtyAC/LOS). It had an abnormal plural form elei “dreams”, derived from primitive olosī, where the intervocalic s was lost resulting in a diphthong. Following Sindarin plural patterns, the result is more likely to be ely “dreams”; see thely < ✱tholosī the (archaic) plural of S. thôl (PE17/188).
Conceptual Development: The Gnomish Lexicon of the 1910s had some similar words: G. oloth or olor “a dream, apparition, vision” and G. olm “a dream” (GL/62), all based on the early root ᴱ√OLO (QL/69).
A verb for “to dream” in The Etymologies of the 1930s derived from primitive ᴹ✶olsa- based on the root ᴹ√OLOS “dream” (Ety/LOS, ÓLOS), where the primitive ls became lth as was usual.
Conceptual Development: In the Gnomish Lexicon of the 1910s G. oltha- was glossed “to appear as an apparition”, but could be used for “I dream” as an impersonal verb with the purported subject in the dative (GL/62). This seems to be similar to how Q. óla- “dream” was used in Tolkien’s later writings, which likewise was an impersonal verb (UT/396). The Gnomish Lexicon had another verb G. olma- “I dream” as well (GL/62). These Gnomish verbs were clearly based on the early root ᴱ√OLO (QL/69).