The Reds did their part on Friday, with a 2-0 win over Wolves at Molineux ensuring their place in pole position for Christmas Day.
This left Liverpool supporters hoping for a boost from ex-manager Roy Hodgson, with few hopeful of the Eagles taking three points against a City side which had lost just once in the league.
But fortunately for the league leaders, Pep Guardiola’s side slipped up again, with Palace sealing the victory with a three-goal burst after Ilkay Gundogan’s opener.
Jeffrey Schlupp equalised on 33 minutes, before Andros Townsend’s sensational strike put the visitors ahead, with Luka Milivojevic’s second-half penalty ultimately proving the winner.
Kevin De Bruyne struck late as City pushed for a hopeful draw, but Palace were able to hold on for a vital win—for themselves and Liverpool.
But regardless of the results at Goodison, Jurgen Klopp and his squad can enjoy Christmas safe in the knowledge they now have a strong lead over their competition.
The Reds are next in action at home to Newcastle on Boxing Day, with City travelling to Leicester, whose victory over Chelsea was their first in five games.