Ancelotti believes it is a missed opportunity to be in the hunt for top four as his side failed to build on their victory over Arsenal last weekend.
The visitors drew first blood inside the opening 13 minutes through Ollie Watkins but Everton swiftly articulated a reply from striker Dominic Calvert-Lewin as the game ended 1-1 in a pulsating first half.
The Toffees failed to take their chances in the second half and Anwar El-Ghazi got the winning goal for the visitors on 80 minutes.
Speaking to the media after the game, Ancelotti was clearly not happy with his side’s attitude.
"The attitude was wrong from the beginning. We didn’t start the game as well as this kind of game demands. It was an important game and would have been an important result. We lost a big opportunity to stay in the fight. We’re still in the fight but with less possibility and more difficulties,” the former Chelsea manager said.
"[Mason] Holgate made a mistake for the goal but played well against Arsenal. He made a mistake and needs to be more focused to avoid this."
Everton have not won at home since a 1-0 victory over Southampton on March 1; a run of four home matches.
Ancelotti added: "It’s unbelievable. It’s difficult to explain why, but it’s true. The away run we have is also unbelievable. The home run has affected us in the table. I hope it doesn't affect us in the end.”