The term "eddy" in "eddy current" comes from the way these currents behave. An "eddy" refers to a circular or swirling motion of water, like a small whirlpool. When we talk about "eddy currents," we’re describing currents that flow in loops or circular paths within a conductor, usually caused by a changing magnetic field.
Here’s why it’s called that: when a magnetic field changes (say, due to the motion of a magnet near a conductor), it induces circulating currents in the conductor. These circulating currents look similar to small whirlpools or eddies in water, which is where the name comes from.
So, it's basically because of the way the current "swirls" in loops, much like the eddies in a fluid.