While Arsenal have put together a six-match unbeaten streak in the top flight, Everton have lost just one of their last 11 league outings.
Having recorded three shutouts in a row, Gunners supporters are now feeling optimistic about the development of a talented squad which has under-performed in recent years.
Any worries about Arteta's lack of managerial experience have now disappeared, with the Spaniard's calls for his players 'to enjoy defending' music to the ears of fans who have watched poor displays at the back undermine their efforts at the other end of the pitch.
Arsenal remain far away from being the finished article, as well as still being seven points adrift of fourth-placed Chelsea, but there is now belief that they can at least secure European football for next season.
At a time when clean sheets have been kept against Burnley, Newcastle United and Olympiacos respectively, Alexandre Lacazette has ended his goal drought with two strikes in successive matches.
Although the Frenchman was dropped for Eddie Nketiah against Newcastle last weekend, the decision appears to have had the desired effort on the more experienced frontman, who is aware that he is no longer guaranteed a place in the team.
Arteta's stance of naming teams based on performances in training over reputation is currently working in his favour, with the former midfielder able to see who he wants in his first-team squad ahead of the following campaign.
While the focus remains on the short term and getting Arsenal up the Premier League table, Arteta is aware that the impending reshuffle in personnel is just as important if the club are going to return to the upper echelons of English football.
That kind of run appeared extremely unlikely when the Toffees found themselves close to the relegation zone in November, and it is now up to Ancelotti to ensure that his team can push on towards the top four.
Although Everton face consecutive games against Arsenal, Manchester United and Chelsea, the upcoming period represents an ideal chance to make up further ground at a time when their rivals are involved in other competitions.
Ancelotti will have small concerns regarding the defensive side of their game, with just one shutout being recorded from eight attempts in all competitions.
Nevertheless, the form of Everton's attack-minded players is as good as anyone in the Premier League right now, a drastic improvement on the return under Marco Silva.
Ancelotti has work to do when it comes to Gylfi Sigurdsson, however, as the playmaker waits for his first goal since October 19.
If the Iceland international can add a finishing touch to his overall solid performances, it could make the difference to Everton as they bid to earn another appearance on the continent.
Arsenal Premier League form: WDDDDW
Arsenal form (all competitions): DDWDWW
Everton Premier League form: LWDDWW
Everton form (all competitions): LWDDWW
After missing the Olympiacos game due to his partner giving birth, Mesut Ozil is expected to return to the starting lineup.
As for Everton, Fabian Delph is likely to return in midfield after serving a one-match suspension.
Although Ancelotti has a number of options regarding his formation, Delph may line up with Morgan Schneiderlin, leaving Sigurdsson to move further forward.
Arsenal possible starting lineup:
Leno; Bellerin, Mustafi, Luiz, Saka; Xhaka, Ceballos; Pepe, Ozil, Aubameyang; Lacazette
Everton possible starting lineup:
Pickford; Coleman, Mina, Keane, Digne; Schneiderlin, Delph; Iwobi, Sigurdsson, Richarlison; Calvert-Lewin
Head To Head
Sunday's meeting will represent the 204th competitive fixture between the two clubs, with Arsenal recording 106 wins in comparison to 61 victories for Everton.
Despite the wide deficit from an historical perspective, Everton are unbeaten in the last two contests, both of which have taken place at Goodison Park.
The Merseyside outfit have not defeated Arsenal in North London since January 1996, when Andrei Kanchelskis netted a late winner in a 2-1 triumph at Highbury.
We say: Arsenal 2-1 Everton
Everything points to this turning out to be a competitive battle in North London. Everton will fancy their chances of extending their advantage over Arsenal, although we favour the home side to dig deep to get another three points on the board.