Alvarez started the game in place of Erling Haaland who was benched with an injury.
Mohamed Salah seized on a loose ball in the box to give the Reds the first goal of the game in the 17th minute. However, Alvarez equalised for Man city ten minutes later.
Alvarez distributed a pass to IIkay Gundogan, who then assisted Kevin De Bruyne’s goal in the 46th minute.
In the 53rd minute, Alvarez’s barred shot rebounded into Gundogan’s direction who blasted in the third goal.
Jack Grealish scored the game’s last goal from a De Bruyne assist.
Guardiola showered praises on Alvarez after the match and likened him to Haaland.
Alvarez has scored six times in 26 Premier League games for Manchester City so far this term.
Manchester City is presently second in the Premier League having a total of 64 points from 28 matches this season.
Manchester City will play Southampton next on Saturday, April 8 at St Mary’s Stadium.