Hello Dada39!
I'm so sorry to hear you're feeling anxious and depressed.
Estrogen can seem like a double-edged sword when it comes to hair. Too much or too little can trigger hair loss.
Hormonal hair loss is complicated. I'm also experiencing hair loss. In my case, it's likely due to low estrogen (not absorbing the patch, confirmed by blood test) and a history of androgen sensitivity. My doctor has switched me to an oral estrogen to raise my estrogen level. Looking at the side effects of my new medication, it lists both loss of scalp hair and increased hair growth.
During perimenopause, some women experience hair loss due to estrogen dominance.
During menopause, some women experience hair loss due to low estrogen.
I'm oversimplifying it, of course. Hair loss due to hormonal imbalance is complex and requires correct diagnosis and treatment by an expert. I've been referred to a dermatologist for that reason, and I've seen an endocrinologist in the past.
Estrogen can trigger changes to the hair growth phases: anagen (growing phase), catagen (transition phase), telogen (resting phase), and exogen (shedding phase). Here's an article that describes how estrogen can cause hair to enter the transition phase prematurely and stay in the resting phase for a longer period, resulting in hair loss. The good news is that this type of hair loss isn't permanent.
Estrogen Leads to Reversible Hair Cycle Retardation through Inducing Premature Catagen and Maintaining Telogen.
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3390338/And here is an article that describes (with pictures!) the phases of hair growth and hormonal regulation of hair follicles.
Hormonal Effects on Hair Follicles
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7432488/Have you spoken to your doctor about your hair loss and your observation that it's connected to your estrogen therapy? Your doctor will want to rule out other causes, such as low thyroid, etc. If you haven't done so already, ask for a referral to a specialist who can diagnose the cause of your hair loss, typically a dermatologist. If the dermatologist thinks it's due to hormonal imbalance, you may be referred to an endocrinologist or other specialist for further investigation and treatment.
Try not to despair. I'm sure it will all get sorted out.