Former Liverpool player Mark Lawrenson, who called the Reds "rudderless" just 11 days ago, believes Brendan Rodgers' side are now showing signs of recovery.
Last season's Premier League runners-up moved up to 10th with a 2-2 draw against Arsenal on Sunday to follow up victory in the League Cup in midweek.
"There are signs of the green shoots of recovery," Lawrenson told BBC Radio 5 live.
"Rodgers changed the formation to 3-4-3 and it seems to work much better."
Lawrenson, who won five league titles with Liverpool, had been highly critical of his former club, saying that:
- Some of the manager's selections were mystifying;
- The team were rudderless and low on confidence;
- The Reds did not have a definitive way of playing;
- And his former club were going backwards.
They looked set for an eighth league defeat of the season against Arsenal until defender Martin Skrtel headed in Adam Lallana's corner in added time.
After the draw at Anfield moved Liverpool to within nine points of fourth-placed West Ham United, Rodgers said his team could still challenge for the Champions League qualifying places.
Lawrenson agreed and added that the return of striker Daniel Sturridge "would improve the team".
Sturridge, the Premier League's second best marksman with 21 goals last season, has been out since August with a succession of injuries.
Reds midfielder Jordan Henderson, 24, believes a return to the high intensity game that served the team so well last season is one of the main reasons for the improved performances.
"Hopefully we can carry that on and pick up more points," he said. "It has been frustrating at times that we have created so many chances, but at the same time it is pleasing our performance levels are much better."