After a dismal start to the season which saw them entrenched in the bottom three, Roy Hodgson's side have produced a five-match unbeaten run in all competitions to move ninth in the Premier League - within a point of fifth place.
That spell has come since the club's future was settled with the completion of John Henry's takeover recently - something Gerrard believes is no coincidence.
"There's been a turnaround but we still haven't got there yet," he said. "We still haven't got fully around the corner but we're on our way round it. Results have improved, we're playing better so the feeling and the confidence are a lot higher than they were a couple of weeks back.
"I think that (the takeover) has helped but I think it's down to the manager's ideas coming across, a lot of hard work on the training ground and everyone pulling in the right direction.
"The players are producing, standing up and being counted and I think that is showing in our recent run of results."
As for his own psychological state following the upturn in fortunes, the 30-year-old England international said: "I feel happier.
"You're never totally happy in football. At the end of the season you get the rewards for what you put in, so we'll see what happens at the end of the season.
"But I'm certainly smiling a lot more, I am certainly a lot more confident in how the team is playing and I'm certainly a lot happier about where we are in the table compared to when we were in the relegation zone a couple of weeks ago.
"At the moment we'll keep taking each game as it comes. Last night was really tricky against Wigan (a 1-1 draw) because we put so much effort into the Chelsea game. Now we need to recover and we've got another tough game against Stoke.
"At the beginning of the season our target was top four and that hasn't changed, but at the moment I don't want to get carried away.
"We are still in a position in the league we are not totally happy with so we need to keep this run going and see where it takes us."
Gerrard, who was at Salisbury Amateur Boxing Club to support his friend Paul Smith, the British super-middleweight champion who takes on James DeGale next month, is also delighted with the resurgence of striker Fernando Torres.
The Spaniard has put a poor start to the season behind him to look back to his goalscoring best with four goals in his last four games.
"He is certainly close," said the Reds skipper. "I think he said himself he can still do more. That is the way he is and why he is regarded as one of the best players in the world.
"I love playing with him. I think he is at his best but if he is telling me he can improve, fantastic."