Scrape away the old plaster from the seam using your drywall knife, at one end of the seam. Scrap off enough to get at the drywall tape beneath it.
Push under the tape with your drywall knife, so you can grip the tape with your fingers. Pull the tape off slowly, taking the rest of the plaster with it as you do. Take off the whole length of it, exposing the line between the two pieces of drywall.
Press mesh drywall tape over the seam, from end to end.
Use your drywall knife to spread joint compound over the tape. Cover the tape completely, so there is a seam of plaster a little wider than the tape. Get the compound smooth and flat.
Let the joint compound dry for six hours. Scrape off any bumps or ridges. Spread on a second layer of compound, making the seam slightly wider and keeping it flat.
Let the second coat to dry for six hours. Scrape it flat with your drywall knife. Spread on a third layer of compound, making it a little wider than the previous one and smooth.
Let the third coat dry for 12 hours. Sand it smooth with your drywall sander. Repaint the wall.