The Ashes holders were set an improbable target of 531 runs over the final two days to prevent the rampant Australians from charging to a two-nil lead in the five-Test series.
The tourists have four wickets left and will go into Monday's fifth day without their front-line batsmen after a confrontational and tense day's cricket. Rain is forecast on the final day.
At the close, England were fighting hard at 247 for six with Matt Prior on 31 and Stuart Broad not out 22. They trailed Australia by 284 runs.
Joe Root, elevated to the number three spot vacated by Jonathan Trott, showed plenty of fight to hold out for 267 minutes for 87 while Kevin Pietersen contributed 53 off 99 balls.
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The young Yorkshireman played back to spinner Nathan Lyon and got an inside edge that ran off his pad for wicketkeeper Brad Haddin to dive forward and take his 200th Test catch.
Root showed plenty of character in his 194-ball knock with nine fours after coming into bat at one for one in the second over of the second innings.
Peter Siddle grabbed the crucial breakthrough, ending England's first century partnership of the series when he bowled Pietersen off an inside edge.