It can sometimes be misleading if you just peer through the plastic reservoir - as Ahmett says, the plastic becomes more opaque and stained over time & the viewing angle isn't conducive to accurate measurement.
A homemade disposable cardboard dipstick is easy to use and works well.
I checked the coolant using a torch, and sure enough, the level was below the min mark. I topped it up and then removed the bleed screw on the heater hose. There was definitely air in there. I started the engine and waited until clear water was dripping out. So hopefully that will have sorted it. I'll keep an eye on the level to see if it goes down again.
Cheers, Geoff