Yes Billy, Wiki is more detailed. One of the �reflexes� of the Proto-IE etymon is indeed "watch�.
I suggested �vigil�, and �to keep vigil� is more or less synonymous with �to keep watch�, and more accurately reflects the sense in which people have a "wake" for someone who recently died. You cannot keep either without staying awake!
Also it more accurately reflects the sense that it typically goes on all night. OED confirms this, and cites recent historical evidence for this.
Andy, I presume you are joking, That �wake� is of course NOT related to this one, and the pun would work better if you said the wake is the wake of someone�s life, rather than his funeral.