While Shelvey admitted he and his teammates were deflated after conceding a late lead, he believes a strong performance against the champions will instil plenty of confidence in the side going forward.
"I think the atmosphere will be important in the coming games," Shelvey told Liverpoolfc.com. "When we scored against City, you couldn't even speak to the person next to you because the atmosphere was so good and the noise was so loud.
"It's good to have that behind you and ever since I have been here, the fans have been like they were on Sunday. That's why it is a great club to play for - the fans are electric.
"I think it's really starting to come together on the pitch and I think the fans saw that again against City. But you've just got to take it step by step in this league and game by game.
"We won't look too far ahead - we've got Hearts on Thursday, so we've got to win that and make sure we get through to the group stages of the Europa League.
"Then we'll look ahead to Arsenal."