The Blades have already been relegated from the Premier League and are enduring one of the worst seasons in the competition's history.
The Toffees still have their eye on a European place but have only won five of their 17 home games so far this campaign.
They face the Blades and Manchester City in their final two Goodison Park fixtures and Ancelotti is keen to finish the season strongly.
"They are a team we have to respect," said Ancelotti.
"They are a team who have been relegated but they will fight for this game because they will want to finish the season with dignity.
"The home run has not been good for us and we want to close the season at home with two good results."
This weekend is the last time Premier League clubs will play without their supporters present.
Fans will only be allowed back at limited capacity to begin with but Ancelotti is hopeful that stadiums will be full in the near future.
He added: "It is important for us and for everyone to have the supporters back. It is so important to have them back.
"I hope in the future we are going to have full stadiums everywhere."
Meanwhile, the Everton manager admits he is not sure whether York-born defender Ben Godfrey has impressed Gareth Southgate enough to be named in England’s Euro 2020 squad this summer.
The 23-year-old joined Everton for £20m from Norwich City last year and has played in every position across the back four for the Merseyside club this season.
“For me I don’t know, all I have to say was his season was really good, he was a fantastic signing in the summer,” added Ancelotti on Godfrey’s chances of an England call-up.
“He did a season with fantastic consistency, he changed position most of the time: he played left-back, right-back, centre-back and he did really well most of the time.
“I don’t know if he will go to the Euros, it’s not my problem, it’s not my decision. I think England has fantastic defenders."
Support The Yorkshire Post and become a subscriber today. Your subscription will help us to continue to bring quality news to the people of Yorkshire. In return, you'll see fewer ads on site, get free access to our app and receive exclusive members-only offers. Click HERE to subscribe.