No, you can't do that. You can check your limitations by visiting the Resolution Center of your PayPal account.
in limitation , in all case , u cant send money... but in few limitation u can receive money . So sending is not allowed at all.
When you login to paypal ,you can view what limits are applied. I for once,my account was limited for 2 weeks,but could only receive payments and wasnt able to send or withdraw...in my case i was able to continue selling on ebay.
If your paypal is limited then you wont be able to send money so you wont be able to use it with ebay
it depends upon the intensity of the limitation that u can receive or not. in most cases u cant send/receive