Yerry Mina's first-half header helped Everton to a third successive win as they beat Arsenal 2-1 at Goodison Park to go second.
Everton started strongly, with Michael Keane firing narrowly wide from distance, before they took the lead on 22 minutes.
Alex Iwobi's right-wing cross was met by Dominic Calvert-Lewin and his header went in off Rob Holding for an own goal.
Arsenal were level on 35 minutes, through Nicolas Pepe's penalty after Ainsley Maitland-Niles had been fouled by Tom Davies.
On the stroke of half-time, Mina restored Everton's advantage, heading in Gylfi Sigurdsson's corner at the near post.
After the break Arsenal pressed Everton, but the closest they came to an equaliser was when David Luiz's deflected shot hit a post.
Everton held on to go second with 26 points, five behind Liverpool.
Arsenal stay 15th on 14 points after a fourth defeat in five matches.
Everton: 26 Dec v Sheff Utd (A)
Arsenal: 26 Dec v Chelsea (H)
Referee: Andre Marriner. Assistants: Scott Ledger, Simon Long. Fourth official: Paul Tierney. VAR: Michael Oliver. Assistant VAR: James Mainwaring.