Sentence:  It appears to be in that strange mental condition which most of ourselves must often enough have experienced in the case of dreams — a kind of <WSD>dread fascination</WSD>, which enchains all the mental faculties, and causes, as it were, a failure of the faculties of the brain. 
Meaning of the word marked with <WSD> tags:  A response to something characterized by staring, an inability to move or intervene, and feelings of dread.