Blown head gasket, probably. Do a pressure check on each cylinder. Also, drain the oil and look at it - see anything that doesn't belong? The coolant is probably going into the oil. Head gasket replacement costs big bucks.
A small leak can be almost invisible, as it evaporates on the hot engine before you see it. Look/feel around the ends of the radiator hoses, heater hoses, thermostat housing, radiator seams, etc., first thing in the morning before you start it up. Any discoloration or wetness will be in the vicinity of the leak. Also, if the heater core is just starting to leak, the only clue can be a slight anti-freeze aroma in the car and/or a gradual build up of slime on the inside of the windshield.
Does it drop two inches and then stay at that level until you fill it back up? If so, check that the radiator cap is holding pressure and that the seal is good in the hose running from the radiator to the overflow tank. A bad cap can let too much into the overflow tank and some of it will overflow the overflow (and out onto the ground) while driving. Its already gone when you stop, so you don't see it. When it cools and draws back into the radiator, the level in the overflow tank will drop by the amount it blew out the top.
As others mentioned it may not be leaking while cold. Consequently the fluid could mostly evaporate when the engine is warm. Look closely around all hose connections, etc., for any evidence of residue.
The expansion tank itself may be leaking. Over time some of the plastic tanks develop micro cracks that open up slightly under pressure and leak but look fine when cold. It took two months to figure this out on one car.
The heater core may be leaking. You should be able to smell the coolant in the car and the interior windows usually fog up a bit and the fog doesn't go away with defrost on.
The smell of anti-freeze evaporating on a hot engine is unmistakeable. Open your hood while the engine is hot and take a big whiff. You'll smell it if it's evaporating.
I had the same problem in my car, and every so often while driving I would faintly smell burning antifreeze. The smell got worse with the heater turned on. It turned out to be a tiny crack in the heater core return hose.
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