It will be a tough match, but seriously, I am not expecting much from Arsenal that they will be able to win the match against Manchester City, despite the fact that Arsenal is in good shape. I always see that anytime the Arsenal squad is playing Manchester City, they are always playing them with fear. Arsenal boys are always lacking confidence that they will win Manchester City, so with that, they are always trying to play defensive games with Manchester City. I know that Manchester City is facing some challenges now, but I still believe that they are still better than Arsenal. Let us know that Manchester City losing against Wolves does not mean that they have lost form, but let us know that is how games work sometimes.
In this match, maybe Arsenal will play better because they are playing at home. Arsenal have also not tasted defeat in the Premier League so they will take advantage of the situation to maintain their best form in this match. As you have said, it is quite correct that Arsenal seemed to lack confidence when facing Manchester City, So Arteta must raise the mentality of the players in this match so that they are able to play at a better level than what they have done. This match is a big opportunity for Arsenal to take top spot from Manchester City if they can get 3 points. Hopefully the defeat to Lens doesn't haunt them in this match.
Although statistically their last 5 meetings in the Premier League were dominated by Manchester City victory. But still, in this match, Arsenal will try to beat Manchester City. Arteta must be able to exploit Manchester City weaknesses from their imbalance to be able to beat Manchester City in this match.