Arsenal still have a chance, but it's obviously very tough because they are not only required to play well consistently, but they also have to hope that Liverpool will struggle in the following games. But if Arteta can be realistic, then it would be better if they quickly waved the white flag in the EPL race, so they can focus on other competitions (eg, the Champions League), and that might increase their chances there.
Arsenal still have a chance at what? Winning the league? 
. You initially sounded like a motivational speaker before you later came back to face reality which is good for the sake of your peace of mind. You are actually right that the smart thing to do now is for Arteta to focus on the champions league, who knows, they might win it
. Don't get me wrong, they can do well but winning it is what I seriously doubt.