The Reds are three points clear at the top of the Premier League but have been wobbling in recent weeks.
Jurgen Klopp’s men have recorded just one win in their last five outings and could only manage a 1-1 draw with West Ham on Monday.
McDermott – who won the European Cup on three occasions with Liverpool – says the players and fans are getting rattled.
“It does get to you a little bit but good players it doesn’t bother whether you’re playing a little five-a-side game or a big match against Manchester United or Everton. It doesn’t matter, they just play,” he told Love Sport Radio.
“Sometimes the fans can get a little bit like that.
“Don’t forget it was only three or four years ago that they should have won the league.
“They know, or have been so close before. There’s still a long way to go.
“If someone had asked me in the beginning of February you’re going to be three points clear of Manchester City you’d have snapped their hand.
“Without a shadow of a doubt. I know we’re all disappointed because one minute we’re looking at seven points in front and then all of a sudden it’s gone down, but City might lose.
“Then we’ve got a game in hand on them and if we win that, it’s six points.
“And don’t forget, Spurs. They’re bang in there. They weren’t three or four weeks ago, they are now.”
Liverpool underwhelmed against the Hammers and were fortunate Sadio Mane’s opener stood.
James Milner was clearly offside in the build-up before the Senegal international slotted home.
“Well it wasn’t a great performance and obviously we could all see that it was offside,” McDermott added.
“That does happen in football, to compensate they go the other way.
“It shouldn’t have been a goal and then all of a sudden he goes ‘right, I’ll get my own back a little bit’ and try and give them a little bit more than they would normally do.
“But that’s not the reason really, the reason was on the night Liverpool did not play as well as we know they can.”
Speaking after the clash, Klopp suggested the clanger later influenced referee Kevin Friend.
“As a human being, if I know I have made a big mistake in the first half, I don’t want to open the gap any more,” Klopp said.
“Referees are obviously human beings, and I understand that, but I didn’t during the game because I had no clue that our goal was offside.”
The FA have now sought written observations from the German chief following his comments.