After missing out on top spot in their group, the Citizens were always likely to face a tough opponent in the first knockout phase.
Barcelona are the side they will meet when the tournament gets back underway in February, with the La Liga title holders regarded as one of the favourites to lift the trophy in 2014.
But Pellegrini – whose side beat defending champions Bayern Munich in their most recent continental clash – says that facing the Catalan club is not as daunting of a task as it once was.
“I think they will be very concerned also. Barcelona is not the team it was two years ago,” Pellegrini told The Metro.
“It’s a beautiful game with two very good teams.
“All the 16 teams are the best teams of Europe – so Real Madrid, Barcelona, Atletico Madrid, Borussia Dortmund, Paris Saint-Germain for me was the same.”
This season marks the first time City have advanced from the initial round of the competition, with former manager Roberto Mancini having been unable to ease his side clear of elimination despite his lavish spending.