Ellon missed out on the chance to open up a seven-point lead at the top of BT Caledonia Division 2 North at The Meadows last Saturday.
A 34-21 home defeat to Highland 2nd XV also allowed the Inverness team to move into second spot, two points behind Ellon, albeit having played two games more.
Ellon head coach Sam Mountain says that Highland have now put themselves in the conversation of title challengers alongside themselves, Garioch, Mackie FPs and Moray.
“They have to be considered without a doubt,” he said. “There can’t be any reason as to why they can’t challenge for the title.
“They will be strong when we go up there, especially on the artificial turf. I believe they will be pushing for the remainder of the season.
“We scored first with a great try from Brad Fraser, but failed to exit properly and from then on in Highland always looked like winning.
“We constantly played catch-up, and never looked like wanting it.”
After going unbeaten in to December, Ellon have now lost two games in a row for the first time this season and Mountain says it is pivotal they now bounce back ahead of a tough run of fixtures next month.
They start this weekend when they travel to Banchory to play Deeside.
“Deeside are a team that battles, and I feel their league position is a false representation for the amount of effort that goes in.
“But we will focus on us the next few weeks, put right the wrongs from the previous few weeks and get back to winning ways.
“Without a doubt it’s a big game, but the vast majority of the league games are now with it being so tight at the top.
“I fully back the lads to stand up over the next few games and give everything in a final push.”