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I have imagined a universalising polytheistic religion of around 5 million adherents.
The pantheon is composed of 120 deities.
A strange thing about this religion is that everyone is considered a priest.
So, I wonder how would rituals be done.
Note: everyone can marry and reproduce in this religion.
As AlexP has alluded to, an important doctrine that Protestant Christians hold to is called the Priesthood of All Believers
A priesthood is a selected group that has full access to a god that is not enjoyed by others.
The basic premise of the Priesthood of All Believers is that the Old Testament Jewish priesthood, like most other OT features, were a foreshadowing of Jesus; once Jesus was crucified and resurrected, all his followers became priests as they have the right of full and direct access to God in all respects, with no intermediary priesthood needed. Repent and believe in Jesus? You're a believer, so you're a priest.
A minister or pastor is merely there to facilitate worship / organise other believers; spiritually, they're no different to anyone else. This is in contrast with Catholicism and Eastern Orthodoxy and to some extent, Anglicanism, which as in many other matters are more like Catholics than other Protestants.
It's an internal eye roll moment for many Protestants when we (I am one) are accused of being some sort of religion for the benefit of powerful clergy; we've had P.O.A.B as a core doctrine for 500 years, and departure from it is sufficient to be considered fringe and very likely heretical. But what's 500 years and probably 90% adherence to the principle compared to a headline about a tyrannical and corrupt pastor? Very little, in the secular Anglophone media, as a rule.
The thing that holds Protestants together doctrinally, insofar as we are all together is scripture; rituals/sacraments are minimal and with the exception of Communion and Baptism, are agreed to be unimportant and non mandatory.
Re: growth, despite the current decline of Christianity in the USA and Europe, 30 or 40% of all Sub Saharan Africans have become Christians since 1960; that's hundreds of millions of people. The Reformation and Great Awakenings were little slower. So in a word, yes, fast. There's a huge amount of 'Just do it' missionary efforts of every description.
Gods watch over every worshipper of them
Something like what you requested is depicted in Dragonlance, where any worshipper had the right to directly call upwards and receive a blessing or something else, depending on their relation to the god they contact. There was a pantheon of 3x7, so your 120 deities could also be fitting, yet they should be more than imaginary to expand such a religion, especially should your world be industrial age or higher.
About details - there could be literally any chaos, especially if those deities would have some conflicts "in the heavens" by their nature or character, as an example, look at Ancient Greek pantheon. So the religion, if not supported by the divine intervention, would be free-for-all, in or out, and in a modern world it would quickly split by "who is existing and who is not", and dissolve.
In a modern world with no visible gods (or a dominant monotheistic religion with something supporting it for this long) your religion would not be able to actively expand their follower base, and even if it would, a hundred gods call for Occam's razor somewhere, and should it be applied, the religion would fall apart. In a medieval or earlier world people won't be "all priests" because they would lack education to understand what is needed of them as priests, so that religion would at least change somehow, developing priests out of whole set of believers sooner or later.
A monotheistic religion with everyone as priest does exist, as explained in the answer by AncientGiantPottedPlant, yet it should be noted that it grew out from Christianity that had priests distinctly separated from the rest of believers, at least for educational reasons, as not everyone back then could properly explain what's going on in the Bible or Gospels. Protestantism (Calvinism in particular) was not possible until widespread education as a means to transfer aggregated knowledge to everyone with brains, not to select few to rule the peasantry.
When everyone is a priest, then nobody is a priest.
Perhaps there is some theological theory that says that contrary to other religions every adherent of the religion is also technically a priest, but in everyday practice that would be rather meaningless. A leader who doesn't lead anyone isn't a leader.
So either you have a caste of religious leaders above priests who provide religious guidance to the regular adherents of the religion and perform certain rituals (call them "bishops" or "high priests" if you want), or the whole faith is an unorganized religion with no hierarchy at all and everyone worships the gods and performs the rituals on their own.
how would rituals be done
-- what are they asking of their gods? The polytheistic religions tend to have a very businesslike approach to rituals: you give god(s) something they want, in return for them giving you something you want.
(Which also means that everybody being a priest isn't a strange thing at all. Everybody is a priest in this system; it's just that some gods have a price beyond any individual's means, so you can only strike a deal with them if you pool your resources and send out a representative to negotiate on your behalf.)
There will always be people who are more interested in some subject and those who are less interested. How these people interact with the subject will similarly vary.
For example, in the real world everyone is an musician. There is no special group who are the only ones allowed to write or perform or comission music. Despite this, people still go out their way to find a good DJ for their wedding.
Some people are skilled and devote their lives to their practice. Some of these people become incredibly influential whilst others wallow in obscurity.
Other people are not practioners themselves but spend large amounts of resources to experience excellence. Their tastes and preferences vary wildly, even across an individuals lifetime.
Some take a critical view and try to influence what people produce and experience, whether through writing or tutoring.
Some people don't care and just go with whatever everyone else is doing.
Is a record label executive all that different to a cardinal in deciding what the masses receive? Is a local holy man filling a similar role to a village band? People genuinely believe good music makes life better and people believe good religious practice will too. Exactly how they try to achieve this depends on who you're talking to.
