Take $\epsilon=\frac{1}{2}$. We can not cover this metric space by finitely many open balls of radius $\epsilon$ as $B(x,\epsilon)\cap B(y,\epsilon)=\emptyset$ when $x=\{x_n\},y=\{y_n\}$ are two distinct sequences each having terms from the set $\{0,1\}$. Using Cantor Diagonal argument one can show, there are uncountably many sequences each having terms from the set $\{0,1\}$.
To prove the part, $B(x,\epsilon)\cap B(y,\epsilon)=\emptyset$ let, $z\in B(x,\epsilon)\cap B(y,\epsilon)$. Since $x\not= y$ we have $k\in \Bbb N$ for which $x_k\not=y_k$. Also, $x_n,y_n\in\{0,1\},\forall n\implies x_n-y_n\in\{0,\pm 1\},\forall n\implies d(x,y)=\sup_{n\in\Bbb N}|x_n-y_n|=|x_k-y_k|=1$. So, $1=d(x,y)\leq d(x,z)+d(z,y)<\epsilon+\epsilon=1,$ contradiction.