I know I am new to watching football, and maybe the Arsenal you describe is the Arsenal that existed before now, but what I have seen this season in Arsenal is that they are not afraid to go against the big teams, they see themselves as one of the big teams in the competition too, and that has helped them. They have a good record against other big teams this season and that record can continue because I still notice that they are still very underrated, and not still taken seriously.
Arsenal have been so strong in the last two seasons even though they failed to win the previous season. Arteta's presence has made Arsenal one of the clubs that has reawakened their interest in competing with other teams in the English league in particular.
But facing Manchester City might be a little different, especially since they will be playing at home. Arteta could chase a draw for the match, but the result would not be in their favor because Liverpool would lead the standings.
I am more confident that Manchester City will be the winner in this match, but Arsenal has the chance to draw with them.