Everton inflicted a potentially fatal blow to Liverpool's Premier League title hopes and took a huge step towards safety with a deserved 2-0 win over their Merseyside rivals at Goodison Park.
Liverpool, needing a win in Jurgen Klopp's final derby as manager to move level on points with leaders Arsenal, were second-best throughout as the excellent hosts claimed their first Premier League home win over the Reds since October 2010.
Jarrad Branthwaite hit the opener midway through the first half following a ferocious opening spell from Sean Dyche's side, with Dominic Calvert-Lewin capitalising on more poor Liverpool defending to head in their second from a corner after half-time.
Liverpool were unable to cope with Everton's set-piece threat and, at the other end, they were beset by familiar finishing issues as Darwin Nunez, Luis Diaz and Mohamed Salah wasted chances.
The defeat leaves Klopp's side three points behind Arsenal in second place with only four games to play and means Manchester City, who have two games in hand, can move two points above them with a win over Brighton, live on Sky Sports on Thursday.
Everton, meanwhile, now sit eight points clear of the relegation zone in 16th place, Premier League safety within their reach as they celebrate a memorable Merseyside derby triumph.
Everton came into the game having not even scored in any of the last four Merseyside derbies but their determination to change the record was obvious from the outset.
The excellent Calvert-Lewin saw an early penalty award overturned for offside following a VAR check, but that disappointment did not affect the hosts, who continued to tear into Liverpool in transition and bombard their penalty area from set-pieces.
Ben Godfrey cleared a Salah
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