The Blues had an outside chance of European football next season, but another disappointing display away from home leaves them with an almost impossible task ahead.
Raúl Jiménez put the hosts ahead from the penalty spot, while Leander Dendoncker and Diego Jota put the game to bed in the second-half to condemn Everton to their second consecutive defeat on the road.
Ancelotti left frustrated after Wolves defeat
It is now three games without a win for Ancelotti’s side, who remain in the bottom half of the table after the defeat on Sunday afternoon.
The Italian boss made three changes to the side that drew at home to Southampton, but the side “didn’t have the spirit to fight” to keep their European dreams alive.
“The attitude was not acceptable,” Ancelotti said in his press conference. “Some games the spirit is really good, like Liverpool, against Norwich after the restart and against Leicester also.
“It is difficult to accept for this reason because this team, this squad has a fighting spirit.
“It’d be the fact that we are far from the Europa League and the players didn’t believe that we could reach it, so they didn’t have the spirit to fight for the next game.
“It doesn’t matter about the result. We have to show on the pitch that we’re professional."
We have to show a different attitude in the final three games
The Blues knew they needed to pick up a positive result on the road against a side fighting for a place in next season’s Champions league.
However, Ancelotti didn’t get the reaction he wanted from his players and said the team must show a different attitude in the last three games of the season.
“It was a really frustrating day today and a really frustrating performance," the Everton boss said. "The team didn’t show good spirit, I think we have to consider this far more than the technical aspect.
“It was not good enough, but the spirit of the team was unacceptable. We have to show in the last three games that we have a different attitude.”
An eight-point gap, with nine points to play, would leave Ancelotti’s side with an “almost impossible” task of securing European football.
He said: “It is really difficult now, almost impossible, but we have three games until the end and we have to finish the season in a different way.
“It doesn’t matter how many points we are able to take, but the attitude has to be different and it will be different that’s for sure.”