With 1861 metres Pico Ruivo is the highest point on Madeira Island and therefor also a must visit. You can go for a sunset hike, but we personally prefer a sunrise hike as there just is something magical about standing on the top of Madeira while admiring a blazing red sunrise.
Set your GPS to "Pico Ruivo" and it will lead you to the parking lot from where you start the hike. The drive from Funchal is 1 hour and the hike is 60-90 minutes each way depending on your fitness. It's uphill, but it never gets uncomfortably strenuous. To enjoy the actual sunrise you should leave Funchal at least 2 hours and 30 minutes before.
Make sure to check the weather forecast the day before as it doesn't make sense to hike Pico Ruivo if it rains, but usually you climb above the clouds. You just need to make sure the clouds are not higher than Pico Ruivo, so ask the receptionist or a local and they will help you.