Everton have accrued nine points out of their opening three games in the Premier League and have qualified for the quarter-final round of the Carabao Cup after beating the likes of Salford City, Fleetwood Town and West Ham United in the previous stages.
There is a feeling of optimism around the blue half of Merseyside due to their perfect start to the campaign but Ancelotti has warned fans not to get carried away.
The Italian coach also revealed why Everton are flying at the moment.
“A lot of reasons; the new signings improved the squad, and the quality and also the players are more motivated, more ambitious. We started well and the atmosphere is good,” the former Chelsea, Paris Saint-Germain and Bayern Munich boss said ahead of Everton’s Premier League game against Brighton and Hove Albion on Saturday.
"But I know it's going to finish, this beautiful bubble, where we are living now. Everything is perfect and we are ok, sooner or later, it’s going to finish.”
“The strength of the squad [shows] when the danger is coming, we have to be ready and maybe it comes tomorrow. If we are not focussed there, the danger will come tomorrow for sure."