Carlo Ancelotti's side have won 12 of 14 Premier League and Champions League matches, losing just one at Manchester City in September.
However, Hodgson insists every team can be beaten and plans to prove that point tomorrow as Liverpool go in search of a third successive top-flight win.
"I don't think any team is unstoppable, quite frankly," Hodgson said.
"All teams, however good they are, are stoppable. All teams will have bad days and will lose matches.
"They might not lose many in a season but they will lose some.
"There is no doubt we have to hit the ground running against Chelsea and we will.
"I think I can guarantee our fans Chelsea won't leave here without having had a hell of a game on their hands."
After back-to-back wins over Blackburn and Bolton, Liverpool's revival looked to be coming to an end against Napoli in the Europa League on Thursday after a poor first half.
But from being a goal down at the interval they were pulled up from the depths by an inspirational display from captain Steven Gerrard, who came off the bench at the break and scored a hat-trick to turn the match around in spectacular fashion.
Hodgson is experienced enough to know Chelsea are unlikely to allow the England midfielder to dominate proceedings as much as he did against the Italians.
He also realises that Gerrard cannot be expected to reproduce that kind of display every week.
For that reason, Hodgson is concentrating on ensuring the team performance is the best it can be, and there have been signs of improvement recently.
"You hope come Sunday they do not have one of their better days - which will assist us - or by contrast we have a very good day and cause them plenty of problems and that is what I am working for," said the 63-year-old.
"We have just got to be good at our game and be aware that they pose special threats and we have to make sure we defend well against those threats.
"When you play against the top teams in the league you realise it is more important you get it right and don't make errors.
"So people have to be fully focused on their jobs to make certain we make life as difficult for Chelsea in terms of scoring goals against us.
"We have to defend properly but I'm pretty sure if Carlo Ancelotti watched us play on Thursday they will be thinking they have to be on their toes to stop Gerrard, Fernando Torres, Maxi Rodriguez and maybe Dirk Kuyt if he is fit.
"We pose a threat ourselves and I think it will be a quality game between two of the Premier League's better teams."
Hodgson hopes coming up against the current leaders will be the incentive for his players to raise their games.
In previous matches this season against top-four teams - Arsenal and Manchester United - the displays have been promising without actually reaching the required level.
"I have to hope that unlike Arsenal and Manchester United, where I think we gave credible performances, this time luck is on our side and we come away with three points," said the Liverpool manager.
"We could easily have done it against Arsenal and we could have done it against United.
"But I'm sure that has been forgotten. We got one point having played with 10 men (against Arsenal) and then lose in the 85th minute having got it back to 2-2 (against United).
"We go into the game with momentum but I want performances not momentum.
"I want performances like I've seen in the last three games and I want it from the first minute to the last."