Liverpool and Manchester City lost ground on leaders Chelsea and second-placed Tottenham as Sergio Aguero earned his side a draw at Etihad Stadium.
With top-four rivals, Manchester United and Tottenham victorious earlier on Sunday, Liverpool and City needed a win to strengthen their bid to finish among the Champions League places.
James Milner put Liverpool ahead from the spot against his former club when Gael Clichy fouled Roberto Firmino with a high boot after the break.
But Kevin de Bruyne picked out Sergio Aguero, who fired first-time past Simon Mignolet to earn his side a point.
Manchester City remained third in the table, two points behind Tottenham, with Liverpool one point further back in fourth.
Pep Guardiola was looking for a response from his City side after their disappointing Champions League exit against Monaco, and it was a tense atmosphere inside the Etihad.
Raheem Sterling should have put City ahead on 40 minutes when De Bruyne fed David Silva, but the low ball evaded Sterling’s touch, who felt he was fouled in the box.
City were beginning to look heavy-legged after the break and Clichy’s desperate defending led to Liverpool’s goal – despite protests that he got a touch on the ball.
But Aguero netted his first goal of the season against a team in the top seven to earn a share of the spoils.
In a frantic final period, either side could have won the game, but Adam Lallana missed the ball from six yards out on 80 minutes and Aguero showed a similar lack of composure in added time.