With Arsenal cruising to a dominant 5-0 victory over Chelsea on Tuesday, the pressure was on Liverpool to maintain pace in the Premier League title race.
However, their hopes suffered a huge blow as local rivals Everton secured a deserved 2-0 victory at Goodison Park on Wednesday night.
Everton’s fight for survival took a significant leap forward despite a controversial overturned penalty in the early stages.
The Toffees found the breakthrough on 27 minutes when Jarrad Branthwaite capitalised on defensive errors, squeezing a shot past Alisson and into the net.
Liverpool’s recent struggles in front of goal continued as Mohamed Salah, Darwin Nunez, and Luis Diaz all squandered clear-cut chances.
Dominic Calvert-Lewin then doubled Everton’s lead on 58 minutes, expertly heading home from a right-wing corner left unmarked by the Reds’ defence.
Despite a late effort from Diaz, who struck the post, Liverpool remained second-best throughout the encounter.
This fourth league defeat of the season leaves the Reds three points behind leaders Arsenal with just four games remaining.
Manchester City, a point behind with two games in hand, are now firmly in the title picture, making Klopp’s men’s chances of lifting the trophy appear increasingly slim.
For Everton, this rare derby victory under manager Sean Dyche proves crucial. They move eight points clear of the relegation zone with four games to play.
The Toffees now turn their attention to securing their Premier League status with a home fixture against 15th-placed Brentford.
Other matches
Elsewhere on Wednesday night, Manchester United continued their rollercoaster season with a dramatic 4-2 win over rock-bottom Sheffield United at Old Trafford.
Despite dominating possession, the Red Devils twice found themselves trailing after conceding sloppy goals.
Bruno Fernandes emerged as the hero for United, scoring a penalty, a thunderous left-footed strike, and assisting the final goal with a precise cross for Rasmus Hojlund.
Crystal Palace secured a 2-0 win over Newcastle United with two second-half goals, while Bournemouth snatched a narrow victory away to Wolverhampton Wanderers at Molineux.