David Unsworth could not hide his disappointment after his Under-21 side slipped to a 3-1 defeat against Liverpool on Thursday.
The young Blues took the lead courtesy of Harry Charsley's strike, but a Ryan Kent brace and Sheyi Ojo penalty resigned the Toffees to a 3-1 defeat in the second mini-derby of the season.
The Under-21s currently sit one point from safety in a congested Barclays U21 Premier League table, having played a game less than rivals Fulham, who currently occupy the place above the Blues.
"It's obviously disappointing," Unsworth told evertonfc.com. "I thought we controlled big chunks of the first half and got our goal, but then they scored a goal out of the blue, which was a great finish from the lad, and I think it was fairly even after that.
"Second half, we came out and started brightly, but the goals we conceded were really poor and we couldn't get in the game after that which was disappointing.
"It's a tough one for us to take. I thought we looked like we warranted something for big spells, but we can't concede goals the way we did and expect to win games."
After lengthy spells on the sidelines with injury, Unsworth says he was pleased to see Joe Williams and Sam Byrne complete 90 minutes against Liverpool.
The Under-21s boss is also hopeful of having forward David Henen, who was forced off at the interval after sustaining an ankle injury, fit for two crunch games against Sunderland and West Ham next week.
"I thought Joe Williams’ energy and fitness levels, considering he's been out for three months and he's only trained for the last couple of days, were unbelievable," added Unsworth.
"It's great to see Sam [Byrne] back, too. We're still trying to get fitness and sharpness in him and that might take a couple of weeks, but we hope by playing the games and keeping him on, he will get that fitness sooner rather than later.
"David [Henen] turned his ankle. His pace is always a threat for us, but he hurt his ankle and we made the decision to bring him off at half-time.
"We're hopeful he will be fit for next week. We're hoping it's not too bad a sprain and we can get it strapped up so he can play a part in our two games next week."