Jon Moody answered I use pixlr.com a lot. Its not quite Photoshop but its pretty close for an online program. And now that its been purchased by AutoDesk (Makers of AutoCAD software) it has a big budget for support and adding features.
Yo Kass answered I've used SumoPaint a few times and can definitely recommend it. There is a free version which you can use in your browser, and my favorite thing about it is all the cool unexpected tools and effects it comes with.It has a fun "symmetry tool" which is great for drawing wild patterns, and you can create awesome looking gradients. They have a whole YouTube channel if you wanna check out tutorials etc, but here's a quick video to highlight some of the things you can do with it: