Arsenal are now fourth on the table with 40 points, two adrift of leaders Liverpool, who take on Newcastle later today at Anfield.
Arsenal's Premier League title aspirations suffered a major slump after being beaten 2-1 by Fulham at Craven Cottage on Sunday.
It made it two successive defeats for the Gunners, who also lost to Westham 2-0 in mid-week.
The Sunday showdown got off to a superb start for Arsenal, who were in front after just five minutes. Bernd Leno could only tip Gabriel Martinelli's curling shot straight into the path of the onrushing Bukayo Saka, who tapped home from close-range.
Fulham responded well, though, and went close through Raul Jimenez. Eventually they got their equaliser as Jimenez stretched to turn home Antonee Robinson's cross at the back post.
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The hosts eventually took the lead when Bobby Decordova-Reid tapped home after a scramble at a corner, leaving Arteta frustrated.
"In Anfield, we lost two points, but we had a big performance. Today is a different story. That’s why we feel sad," he told Sky Sports.
"We weren't’ good enough. We didn't’ have enough rhythm threat. Defensively, we were second best."
"Painful and a sad day. That’s how I would sum it up. We had the chance to be at the top of the table after 20 games. Three days ago we lost a game that we deserved to win, today was a different story."
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Arsenal are now fourth on the table with 40 points, two adrift of leaders Liverpool, who take on Newcastle later today at Anfield.