Work with power series was innovated by James Gregory and Isaac Newton almost a century earlier so the kind of arguments Euler presented in his 1748 _Introductio_ were easily digestible by his contemporary mathematicians. The _Introductio_ is full of calculations with power series a lot more complicated than the one you mentioned. I have seen no evidence that anybody doubted Euler's formula. His infinite product formula for the sine function was far more innovative; that also seems to have elicited no objections. For a detailed study of the formula see for example this acticle.