The Reds title hopes suffered a major blow with a poor performance against their City rivals, who boosted their relegation survival chances with a dogged defensive performance to seal a vital three points.
Liverpool missed the chance to go level on the same points with Arsenal and they risk being overtaken by Manchester City, who are back in action on Thursday night against Brighton.
Manchester City have two games in hand. Victory against Brighton will see them overtake Liverpool to occupy the second position.
Klopp expressed his disappointment at Liverpool’s poor performance which has left their title chances hanging by a thread.
“We created a lot and didn’t score. We were in a rush, not really clear enough. They scored the second goal with the routine they do all season. They had free kick after free kick, but we weren’t good enough.”
Klopp admitted his players were in a rush to get back into the game before Everton scored the second goal.
He said: “Second half [was] emotional, we were in a rush, not really clear and then we conceded in the second half with a routine they do the whole season. We knew exactly the ball would end up there, we just didn’t defend it.
“They had free kick after free kick. We had the ball, they earned the free kick. It’s an important start of the story.”
Similarly, Liverpool captain, Virgil Van Dijk has slammed his teammate’s desire following the defeat against Everton.
Van Dijk said: “Listen, very disappointed in so many ways and I think everyone has to look in the mirror and look at their own performances and if they really gave everything and do they really want to win the league.
“We are fighting and still have games after tonight, but if we play like we did overall in the game like today, not winning challenges and giving the ref an opportunity to give free-kicks like he did many times, then we have no chance to win the title.”
Klopp and Van Dijk will be hoping for an immediate response when Liverpool travel to West Ham on Saturday.