Liverpool's best form this season suggests they can compete at "the very top", according to Gary McAllister.
Jurgen Klopp's side head into Saturday's Merseyside derby - live on Sky Sports - back in form after a New Year slump that cost them a place in both domestic cups and brought just one win from seven in the Premier League.
A three-match unbeaten run has included a convincing defeat of Arsenal and a point at Manchester City, and the Reds are yet to lose to a top-half team in the league.
McAllister, scorer of a famous derby winner against Everton back in 2001, told Sky Sports News HQ: "You can never look at it and think 'we're going to win this game, or that one' because it comes round and bites you on the bum.
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"But over the piece we've touched on levels I think can push us on to be winning again and competing at the very top."
McAllister's view was endorsed in the Premier League Daily studio by Davie Provan, who said: "At the top of their game they're as good as any other side in the league, but they don't always hit the heights.
"Consistency has been the problem. They've looked terrific at times, other times they've underachieved badly.
"I'm sure Jurgen Klopp must be scratching his head at times. There are times he sends them out I think he's not quite sure what he's going to get from them."
Liverpool sit in fourth with a four-point advantage on Manchester United, although both United and sixth-placed Arsenal have two games in hand.
Everton are six points back and in the mix for the Champions League places, and McAllister expects the visitors to "go for it" at Anfield.
But the "wise money" is on Liverpool given Everton's injury problems, according to Provan, who said: "I would say is the advantage is very much in Liverpool's favour after the events of this week.
"There's the injury to Seamus Coleman - and we wish him well - Morgan Schneiderlin, we believe, is struggling, there's James McCarthy's hamstring...
"At the same time, Liverpool are flying Philippe Coutinho and Roberto Firmino back in a private jet, so Liverpool are in better shape going into this."