Everton have lost just once in their last nine Premier League matches and have scored seven goals in recent wins over West Brom and Hull without conceding.
Their recent form has put them level on points with Arsenal and qualifying for European football next season is very much a possibility.
Liverpool meanwhile occupy the final Champions League spot and know that any slip up could prove disastrous.
Philippe Coutinho is not concerned with Everton's upturn in form
Coutinho scored Liverpool's fourth in the 4-0 win over Everton last season
But Philippe Coutinho has referred to Liverpool's superior league position as a reason why they shouldn't be concerned.
“I don’t think about that or worry about that,” the 24-year-old.
“Right now, Liverpool is higher in the league, that’s the reality and that’s all we have to think about.”
Philippe Coutinho wins Samba d'Or trophy
Thu, February 23, 2017
Click through the gallery for the best snaps of Philippe Coutinho with his prestigious award
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Click through the gallery for the best snaps of Philippe Coutinho with his award
Everton haven't won a Merseyside derby since 2010 and have recorded just three victories in the past 17 years.
And Coutinho hopes to maintain Liverpool's great record against their arch-rivals.
“We will be ready,” he added. “The derby is a very special match for everyone, the fans and the players.
Liverpool have lost just three times in the past 17 years against Everton
“We know what it means. The people of Liverpool live this match with so much emotion and this time it is even more because Everton have improved so much in recent weeks.
“We know it won’t be easy, but we know we have to to win, for our fans, for our morale and for everybody.”