Everton lost ground in the race for a Champions League place on Sunday when they went down 1-0 to struggling Fulham at Craven Cottage, a ground where the Merseysiders have not mustered a point in 42 years.
In the day's other games Manchester City came from behind to beat Tottenham Hotspur 2-1 while Wigan Athletic beat Bolton Wanderers 1-0 despite playing with 10 men for 85 minutes.
Fulham, second-last in the standings but now only three points from safety, won a scrappy game in the 67th minute when Simon Davies crossed for fellow former Evertonian Brian McBride to score with a firm header.
"We can look forward to the last eight games with optimism," Fulham coach Roy Hodgson told the BBC.
"The goal was vital. For us the difference between one and three points in the match was everything," added the manager after only his second win since taking over last December.
Everton, unbeaten in the league all year but knocked out of the UEFA Cup on penalties by Fiorentina in midweek, looked flat all afternoon in blustery conditions and rarely tested home goalkeeper Kasey Keller.
"You don't get results if you don't play well. We didn't play well so we didn't deserve it," Everton manager David Moyes told Everton TV.
The defeat leaves them in fifth place on 56 points, three behind Liverpool, who beat Reading 2-1 on Saturday.
UNITED LEAD
Manchester United lead the way on 67 points after their 1-0 win at Derby County, with Arsenal also on 67 but from a game more after they were held to a 1-1 home draw by Middlesbrough.
Chelsea are still in the title chase on 64 with a game in hand on Arsenal after they won 1-0 at Sunderland.
Tottenham, also knocked out of the UEFA Cup on penalties in midweek, led City with a sweetly-struck shot by Robbie Keane after 32 minutes.
But the hosts levelled the mid-table duel through Stephen Ireland and won it with a Nedum Onuoha header 18 minutes from time. Wigan, who had midfielder Jason Koumas sent off for a foul after five minutes, beat Bolton with a first-half Emile Heskey shot.
Wigan are now six points above the drop zone, where Bolton remain, two above Fulham.
Newcastle United, slipping into dangerous waters after taking only two points from their seven league games under Kevin Keegan, visit fellow-strugglers Birmingham City on Monday.