Veteran [Brendan Rodgers' side are now only four points behind perennial Champions League qualifiers Arsenal, in sixth, and eight behind surprise package West Brom, currently occupying fourth place.
"Teams are dropping points all over the place," said Carragher.
"We look at it as if we haven't had a great start to the season but winning yesterday we're not too far of the top four, which is where we want to be.
"From our own point of view we want to push on and make a challenge for the top four.
"It seems like if everyone is throwing it away it is still up for grabs."
Carragher came off the bench late on yesterday, which gave him chance to appreciate fully Suarez's performance.
His first-time strike from Raheem Sterling's cross was matched only by his cool finish when played through by Jose Enrique, who then clinched the result with his first goal for the club after he followed in the rebound from Sterling's shot.
Carragher rates Suarez as high, if not higher, than the great forwards he has played alongside at Anfield and feels he is irreplaceable.
"I think he is definitely right up there," he told BBC Radio 5 Liver's Sportsweek.
"I can only talk about the players I've played with (Robbie) Fowler, (Michael) Owen, (Fernando) Torres and I think he comes pretty close to that list.
"It's not a great Liverpool side at the moment. The other players I've played with have played in sides that have won trophies and been near the top of the league.
"For him to do what he is doing in a side that is still building under the new manager I wouldn't swap him for anyone in the Premier League.
"I think what he does in our team and what he gives us no other player really could."
Despite Suarez continuing to grab the headlines Rodgers was keen to ensure the praise was spread around the team.
"I thought Raheem was excellent. At 17 years of age he played 86 minutes for England in his first cap during the week and he could probably have played another game he is that fit," said the Reds boss.
"I thought he was well supported by those around him but of course the goalscorer always gets top of the bill.
"I thought Jordan Henderson was outstanding when he came on (in a tactical switch after just 36 minutes'>Liverpool ](http://www.itv.com/sport/football/teams/liverpool/)defender Jamie Carragher believes a top-four finish is still within the club's reach and the current form of striker Luis Suarez supports that.
The Uruguay international produced another scintillating performance in the 3-0 win over Wigan, scoring twice and having a hand in another goal as the Reds recorded only their fourth home win of 2012.
Suarez is now the Barclays Premier League).
"I thought we needed to flip our midfield around and I thought he was excellent.
"He has been really patient, he is learning all the time and he has a great part to play in our future going forward."
Rodgers knows he needs to strengthen when the transfer window reopens but hopes by then his current players have put themselves in a position to be able to challenge for the top four.
"I am not going to say we are going to get five or six players in, it doesn't work that way," he added.
"We know it is going to be very difficult this season in terms of transition in the group but we'll get some players in and with the players we have we'll work with them and see where it takes us.
"I am looking forward to pushing on now. Hopefully we will keep a strong squad and see what happens in January then we can have a great second half to the season."
Having lost Ben Watson to a broken leg in a freak clash with Sterling Wigan manager Roberto Martinez also has an injury worry about captain Gary Caldwell.
"He is a concern because he has a little problem with his hamstring but we will get a better diagnosis on Monday," said the Spaniard, who felt the midweek internationals had affected his side.
"I can't wait to get rid of all the distractions of international fixtures and concentrate on the league now until March.
"We can't wait to get back into a normal week and hopefully get the injured players back as quickly as we can."