Sherwood said: "It's very tight. I see it going down to the last month of the season, that's for sure.
"It's going to be tough for anyone to maintain the run we are all having. We seem to be not climbing above anyone at the moment, you are not letting yourself get free in that fourth spot.
"Liverpool are doing excellently and we have just got to make sure we keep breathing down their necks.
"Liverpool are up there at the moment and you would say that they are favourites (for a Champions League place), but we think we can put a charge together. We have got to believe in that.
"We know how difficult it is going to be. But it's not only Liverpool, there are other teams in this race."