The Anfield club are sitting seventh on the Premier League table and are only left in the Europa League, in which they host Zenit St Petersburg on Thursday, and Gerrard believes the state of their season is down to fundamental mistakes which can be avoided.
"We're playing fantastic football and we're performing really well, but it seems as if we're taking two or three steps forward and then one back," he told BBC Radio Merseyside.
"That's because of individual errors throughout the team and I think we've all been guilty of that at various stages of the season.
"There have been performances that have been up there with the best I've experienced as a Liverpool player.
"We've blown teams away and we've murdered teams in possession. If they were boxing matches, the towel would have gone in before the final whistle.
"But the frustrating thing is that on the back of those fantastic performances, this team hasn't turned up or we've made stupid schoolboy errors which have led to bad results.
"They're the performances we need to eradicate if we're going to become a top side and mix it with the best, both domestically and in Europe."