Sunday's win against West Ham left Everton, with four matches of their Premier League campaign remaining, three points behind fifth-placed West Ham, who have played a game more.
Regarding the battle for Europe, Ancelotti said: “Top four is not a possibility for us, we have to be honest. We can fight for the other positions.
“I don't know which position we can reach, but we have to get (as many) more points as possible. Tomorrow is vital, as it was vital against West Ham. We know this and I hope the team will be able to repeat the same performance."
Everton finished 12th last season after Ancelotti took charge in December 2019, and the Italian said of this term: “The team improved, we have more knowledge and confidence, we had good results, fantastic results away. So our season has to be considered a good season.
“We are still in the fight for Europe and we want to put all our energy for our target."