For the second week running Liverpool shared eight goals, but while their thriller at Chelsea meant they exited the Champions League full of pride, they will rue the two points dropped against the Gunners despite going top of the table.
Liverpool have 71 points and are above Manchester United on goal difference but United have seven games remaining to Liverpool's five, starting at home to Portsmouth on Wednesday. Chelsea are third on 67, with Arsenal fourth on 62.
VIDEO: Watch all eight goals now on the VPlayer
PHOTOS: Liverpool 4-4 Arsenal
The lethal Arshavin, Arsenal's record signing, seemed to have won a rip-roaring contest after a quick counter-attack in the 90th minute only for Yossi Benayoun to grab a stoppage-time equaliser for Liverpool with his second goal of the night.
"We made too many mistakes but we showed character and never gave up so that's a positive for the rest of the season," Liverpool manager Rafael Benitez told Sky Sports.
"It's difficult to explain. Maybe we were a bit nervous and had some anxiety but it's one more point against a good team.
"United are in the driving seat but we showed until the last minute that we fight and we will do until the last game."
Arshavin gave Arsenal a shock lead nine minutes before halftime from Cesc Fabregas's pull back.
First, Torres sent a bullet header into the corner from Dirk Kuyt's cross and Kuyt was again the supplier as he lofted a ball into the area for Benayoun to touch over the line.
After 67 minutes Arshavin robbed Alvaro Arbeloa of the ball and strode on to thrash a shot past Pepe Reina and he completed his hat-trick three minutes later when Fabio Aurelio's sloppy clearance fell at his feet.
