Yes the mixing of ethanol and water can be a tricky one. Due to unequal attractions and repulsions between the ethanol and water, the volume can expand or contract. Usually, this is governed by Raoult's Law where the vapor pressure is equal to the pure vapor pressure times the mole fraction.
P1=X*P0
Here you get a divergence from an ideal solution behavior, where ideally, the solute molecules and solvent molecules have the same kind of interactions with each other. I believe they're called azeotropes when they diverge from ideal solution behavior. When this happens, it sometimes makes it impossible to separate something by distillation.