Arsenal are making serene progress towards regaining the Premiership title from Manchester United, while Liverpool are immersed in a battle to secure fourth place.
Liverpool had a torrid Easter, losing to Arsenal and Charlton, and the pointless return has left Houllier to reflect on the gulf in class.
"As much as it hurts to say it, the gulf between the two teams has become embarrassing," said Houllier.
French tactician Houllier is refusing to give up on his side securing the fourth place which will bring them a place in next season's UEFA Champions League.
"We're going to have to take maximum points from the games we have left to play at Anfield," added Houllier. "We're also going to need a result from at least one of our two away matches."
Liverpool were left to lick their wounds after the Charlton defeat and Houllier has insisted the Anfield faithful will see an improved display when they face Fulham.
"We're still in there fighting and I am sure we won't play as badly as we did against Charlton in any of the games coming up," said Houllier.
"Fourth place is still open and there are four or five teams competing for it. We are still in there."
