Arsenal were bottom of the table in August after losing their first three league games but Arteta’s side have jumped to fifth spot on 20 points after 11 matches, with an unbeaten run of eight games.
The London club, however, have not won a league game at Anfield since 2012, when Arteta was still playing for them.
“It is a test,” Arteta told reporters on Friday. “Anfield is a fascinating stadium to play football.
“You have to be at your best and raise your level to the maximum standards emotionally, physically, technically and tactically because if you don’t you will get exposed.
“To go to Anfield is always a test. But again if you are able to do that as well, there are not that many grounds as good to feel that you are a proper footballer.”
Arteta said his in-form side are keen to maintain their momentum by playing at the “highest level” against Liverpool, who are a spot above them in the table on 22 points.
“Juergen (Klopp) and his staff have managed to bring the club to the best moments in their history and sustained it which is the hardest thing to do,” Arteta said of their opponents.
“They have transformed the energy around the place, what they have created in the stadium is something special and they have been extremely successful.”
Arteta said that Thomas Partey and Pierre-Emerick Aubameyang will be assessed before the match due to injury issues, while Sead Kolasinac (left ankle) and Granit Xhaka (right knee) are still recovering.