Arouna Kone put the hosts in front midway through the first half with a close-range header, but they wasted further chances to extend their lead.
And relegation-threatened Racing drew level through Manuel Arana's leveller on the hour mark.
The point moved fourth-placed Levante to within four points of Valencia, but they now have a game in hand. And worrying it extended their winless run in the league to six games.
The draw moved Racing two points above the drop zone.
Both sides were slow to get going with Levante's Ruben Suarez and Racing's Adrian having long-range shots saved.
But the hosts went in front from the first chance of the game in the 23rd minute.
Xavi Torres swung in a cross which Kone headed home into the bottom corner from six yards.
The Ivorian striker was proving a threat and he had a shot from inside the area saved by Mario Fernandez.
The Racing goalkeeper did brilliantly to prevent his side falling further behind before the break with a magnificent double save, first parrying Kone's shot and then tipping Botelho's follow-up header round the post.
And that miss proved costly as the visitors levelled in the 60th minute, Arana finding the top corner with a left-footed effort from the right.
Levante, looking for their first win of the year, pressed for a winner with Valdo twice going close.
But he saw a header saved by Fernandez and then shot tamely over from close range as Levante's challenge stuttered again.