Roberto Martinez’s men were mauled as the Reds cruised to their fourth consecutive victory with a 4-0 win, having just one defeat in their past 15 games, and 14 goals scored in their last four matches.
Jurgen Klopp’s side bossed the game in their 225th meeting and also his first taste of the Merseyside Derby.
Divock Origi netted his 10th goal of the season to give Liverpool the lead before Mamadou Sakho doubled the lead before halftime.
At the start of the second half, Everton defender, Ramiro Funes Mori was rightly sent off for a nasty stamp on the Origi and walked off the pitch clutching the club crest on his shirt.
With the 21-year-old striker needing to be stretchered off the pitch following the tackle, the Argentine’s reaction incensed the home fans and inspired Liverpool to extract some revenge.
Daniel Sturridge replaced Origi and netted his 50th goal for the club in just 87 games. Fifteen minutes later, Coutinho made it four, leaving the home fans singing ‘Cheerio Cheerio’ to their neighbours.
Liverpool destroyed their neighbours with ease after a month-and-a-half in which they eliminated Manchester United and Borussia Dortmund from the Europa League, scorched Manchester City 3-0 in the league, dented Tottenham’s title challenge and rediscovered their goal touch.