"We know we have a good chance to go a long way in the tournament, we've been eating, drinking and sleeping to prepare ourselves as best as possible," Eriksson was quoted as saying by BBC on Saturday.
"There are 16 teams left and we are one of them, we're exactly in the position we wanted to be in before the World Cup and here we are."
Eriksson, who is guiding England in the World Cup for the second time in a row, said that after six years at the helm, this will be his last appearance as the three lions coach.
"We will need courage in the knock out stages, it’s a matter of life or death now, you either stay or go back to Germany and that’s why we have to be courageous."
"I've not thought about it being my last game, I've never even dreamt of that," Eriksson added.
The Swede coach believes his side will have a strong chance to beat Ecuador but assured that they have respect for the Latin American team.
"Ecuador are a very good team, they're rather quick and physically strong, they do simple things and play the ball."
"But I think we'll win. It’s a football match, 90 minutes and you never know, but I think and strongly believe we'll go through," Eriksson considered.
England will play their last 16 round against group A runners up Ecuador on Sunday in Stuttgart.